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TMI Blog1989 (10) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 1984-85. The appeal raises a very interesting issue. Fortunately for us there are certain facts which are not in dispute. The assessee constructed a house property. He had taken certain loans for that property. In the accounting year, some of those loans were repaid. Such repayments were made by taking other loans. For the latter loans taken for repaying the original loan, the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee submits that on the facts as set out by us, the borrowings were only for construction of the property and, therefore, interest paid on the same should be allowed as a deduction in full. 4. The learned Departmental Representative placed emphasis on the wordings of the provisions of section 24(1)(vi) which read as under : "(vi) where the property has been acquired, constructed, repair ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptable or not. 6. This provision has been introduced to give a fillip to house construction. Where loans are genuinely taken, cases can well be envisaged where a person may tell the borrower that he is able to advance the loan only, say, for a period of six months or so. To illustrate further, Mr. 'X' may be having cash available with him which he can spare for six months to Mr. 'Y' who is const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of sec. 24(1)(vi) cannot be restricted. In the present case, there is no material to suggest that the transaction was clourable or there were any of the other deficiencies to which we have referred. On the other hand, the entire material shows that the transactions have been accepted to be genuine. In such circumstances, we hold that the assessee is entitled to the full relief claimed under s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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