Learner
4016 Points
Joined December 2009
Dear Friends,
In the present case the clubbing provisions will be attracted...and deduction will be allowed.
Interest on borrowals invested in properties owned by wife/minor children is deductible - Where the assessee had borrowed money at interest to purchase certain house property in the names of his wife and minor children and the income from that property was included in the assessee’s total income under the provisions of section 64(1)(iv) and (v), it was held that the assessee’s claim for deduction of interest on borrowed money under section 24, read with section 27(1), could not be rejected on the ground that the borrowing had been effected, not in the name of the assessee’s wife or minor children, but in his own name - S.M.A. Siddique v. CIT