If Interest on original loan not allowable then Interest on second loan for repayment of original loan also not allowable

ITAT, BENCH `B’, CHENNAI K. S. Kamalakannan Vs ACIT ITA No. 588/Mds/2009 DECIDED ON: November 27, 2009 RELEVANT PARAGRAPH 9. The question that arises is whether the loan taken by the assessee from HSBC was for repayment of the loan taken for construction, acquisition, reconstruction “or renewal of the property in question. The undisputed feet emerging from the records is that the deceased father of the assessee took the loan of Rs. 1 crore from EBSL for business purposes by mortgaging the property in question. The assessee inherited immovable property, movable property and liabilit...