1997 (9) TMI 24

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..... xtent to which interest should be allowed as a deduction for the assessment year 1987-88. The assessee had claimed deduction in the sum of Rs. 8,10,846.94, but the Assessing Officer allowed the deduction of Rs. 94,546.62 under section 5(k) of the Tamil Nadu Agricultural Income-tax Act, 1955. He allowed a further sum of Rs. 3,84,737.67 under section 5(e) of the Act. The assessee has come up in revi .....

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..... years. This argument has been rejected and in our opinion rightly by the Tribunal. Section 5(k) does not stipulate that the borrowing in respect of which interest has been paid should have been effected in the previous year, nor does it require that the expenditure from that borrowing should also have been effected in the previous year in order to entitle the assessee to claim deduction for inter .....

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