Interest on home Loan availed of to repay earlier loan is allowable U/s. 24(b)

Advertisement Akulu Nagaraj Gupta Subbaraju Vs. ITO (ITAT Bangalore) Tribunal referred to a CBDT Circular No. 28, date 20-8-1969 wherein it was specified that if the second borrowing has really been used to repay the original loan and this fact is proved to the satisfaction of the assessing officer, the interest paid on the second loan would also be allowed as a deduction under section 24(1)(vi) of the Income Tax Act. Interest on subsequent loan to repay the earlier housing loan is also allowable subject to the following conditions. the assessee has to establish that the subsequent loan ...