Interest on loan taken for a discontinued business

 One of my client who were in civil construction business individualy till FY 2006-07 formed a partnership with another contractor and continued the business. However a loan taken for the business in 2004-05 by my client has not been taken over by the new firm. My client is still repaying the amount. My doubt is whether he can claim the interest on loan individualy paid by him against his business income (i.e interest on capital & salary from firm...no other business income) from FY 2007-08 onwards??