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2017 (9) TMI 180 - ITAT DELHIInterest payment on second loan is allowable expenditure u/s 24 - Income from house property (Rent) - loan taken for repayment of the old loan taken for the purpose of construction of the property - Held that:- Undisputedly, as per CBDT Circular No.28 dated 20.08.1969 if the loan taken has been used exclusively to repay the original/old loan for construction/acquisition of the property, interest paid on the second loan would be allowed as deduction under section 24(1)(vi) of the Income-tax Act, 1961. Thus the assessee company is entitled for deduction of amount of ₹ 45,95,00,961/- paid as interest on loan availed of from ICICI Bank to repay the old existing loan taken for the purpose of construction/acquisition of the property from M/s. DLF Limited and M/s. DLF Universal Limited, however subject to the verification of the facts by the AO. So, we hereby allow the appeal filed by the assessee by setting aside the impugned order.
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