A person borrowed money and paid the same as advance to acquire land. The person claimed the interest on loan as revenue expenditure. The land was not acquired till the end of the assessment year. The interest was disallowed in the assessment proceedings.
Please quote case laws or section under which the expenditure can be claimed as allowable.
The person couldn't acquire the land in the later assessment years also and received a compensation of 40 lakhs from the seller. The compensation received is treated as business receipt and offered to tax. Can the assessee now file revised return and claimed the interest expenditure disallowed earlier as a deduction.
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