Interest on loan taken for making investment u/s 54 EC
This query is : Resolved
14 November 2009
Hi,
My query is.Can i take a loan to make investment u/s 54 EC, If the amount of consideration is not received. If yes, Then will that interest on loan taken will qualify as deduction against the interest accrued on bond purchased u/s 54 EC.
Regards.
Ram Das Garg.
My query is.Can i take a loan to make investment u/s 54 EC, If the amount of consideration is not received. If yes, Then will that interest on loan taken will qualify as deduction against the interest accrued on bond purchased u/s 54 EC.
Regards.
Ram Das Garg.
14 November 2009
Bomaby High Court in CIT vs Dr.P.S.Pasricha decided that for claiming benefit under s. 54(1), law does not make it mandatory that the assessee must use the same funds as received from sale. The source of funds is not relevant.
The same analogy can be applied in section 54EC also.
Set off of interest will not be allowed in view of the decision in
CIT Vs. Dr. V.P Gopinathan (2001) 248 ITR 449 (SC).
The same analogy can be applied in section 54EC also.
Set off of interest will not be allowed in view of the decision in
CIT Vs. Dr. V.P Gopinathan (2001) 248 ITR 449 (SC).
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