Interest on housing loan (loan used for business purpose)

This query is : Resolved

CA. Praveen Narayan (Querist)
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18 November 2010

Dear friends..

is it possible to claim deduction of interest on housing loan but used for business purpose?

If yes, pls give me case law, if any..

Thanks in advance..

Pankaj Jhawar

Pankaj Jhawar (Expert)
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19 November 2010 Yes, u can claim but you have to prove that the house was used for the purposes of Business

CA. Praveen Narayan

CA. Praveen Narayan (Querist)
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19 November 2010 No sir, in fact th loan amt is used in business itself.. Thr s no construction of building..

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Pankaj Jhawar

Pankaj Jhawar (Expert)
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19 November 2010 Please give detail of the transaction

CA. Praveen Narayan

CA. Praveen Narayan (Querist)
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19 November 2010 Sir, a housing loan s taken and used the amount to pay salary, to make payments to creditors and all.. tht means loan s used fro business purpose eventhough it was a housing loan.. U/s 37 any expenditure incurred 4 th purpos f buzz s allowabl as deduction..