a person purchased house property and took a loan against the same thereafter he completely demolished the house and constructed the same as per his design and taking the loan for the construction also. will the deduction u/s 24 pre construction period will be allowed in both the loans.
please give the reference of caselaw if any.
as per section 24(b) deduction is allowed on interest payable on loan borrowed for the purpose of ACQUISITION, CONSTRUCTION, REPAIR, RENEWAL OR RECONSTRUCTION
case- 1st loan
in the above case loan is taken AGAINST HOUSE PROPERTY , not for acquisition, construction, repair, renewal or reconstruction. so, no deduction is allowed against the house property
case- 2nd loan
in 2nd case loan is taken for construction of house property. so, he can claim deduction u/s 24 (b) only for second house if all the other conditions are fulfilled.
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