Assessee is  engaged in business of letting out shops on lease. Assessee claimed interest expense pertaining to borrowing for acquiring/constructing properties under section 24(b). Assessing Officer held  that assessee-company issued OCD (Optionally convertible debentures) which were utilized for repayment of loan taken from one JPIPL and interest claimed was with respect to said OCD. He denied  the claim of  on ground that claim of interest on such indirect borrowings for construction is  not tenable in law  Commissioner (Appeals) held that loan on which interest was paid, was not utilized for repaying another loan, but was utilized for paying off a liability of assessee-company for construction expenses and thus, loan would be considered to be procured for constructing property and interest paid thereon would be allowable in terms of section 24(b). Held that  ledger account of JPIPL that outstanding liability of JPIPL was on account of construction work undertaken by it for assessee and OCD were utilized for repaying this liability. Order of CIT(A) is affirmed.  (AY. 2012-13)