section 24(b) interest allowable on both Residential & commercial property

Indraprastha Shelters Pvt. Ltd. Vs DCIT (ITAT Bangalore)  With regard to the other reason given by the revenue authorities for denying deduction of interest paid to Mrs.Kaveri bai is by applying the 3rd proviso to Sec.24(b) of the Act. On perusal of the provisions of section 24(b), it is clear that the deduction is allowed on account of interest paid on any borrowed capital which is used for the purpose of acquiring, constructing, repairing, renewing or reconstructing of property. The expression used in Sec.24(b) is ‘property’ and not residential or commercial property. Therefore, irrespe...