Interest on Loan taken to repay previous home loan allowable

M/s. Shah Construction Co. Vs  ITO (ITAT Mumbai) Conclusion – Deduction of interest u/s 24B allowable when loan borrowed to repay previous loan taken for the construction of residential unit. Facts – Assessee has constructed a building namely Sumer Heights comprising two blocks A & B. Block-A comprised of residential units and Block-B was a commercial building. The assessee let out Block B to Axis Bank Ltd. on a monthly rental of Rs.15 lakhs and also borrowed a sum of Rs.8,45,00,000/- which was utilised by the assessee to repay the loan creditors which were standing in the balance she...