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2003 (11) TMI 29 - CALCUTTA HIGH COURTClaim for deduction u/s 24(1)(vi) - Deductions from income from house property - contention of the appellant-assessee is that the amount paid to the assessee for purchase of the flat was utilised for construction of the flat and has to be treated as capital borrowed by the assessee for construction of the flat and, therefore, the interest paid thereon is liable to be deducted u/s 24(1)(vi) - Held the amount so paid by the assessee to the purchaser was not interest payable on any borrowed capital with which the construction of the said flat was made - payment made by the assessee to the purchaser on his failure to deliver the flat within the stipulated time, even if it is termed as interest, is in the nature of penalty or liquidated damages. In our opinion, in such facts deduction is not permissible u/s 24(1)(vi)
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