interest under section 36(1)(iii) disallowed

Assessee has given interest free advance which is sufficient to cover from the interest free fund available in the form of partners capital and interest free advance taken. Despite of this fact the ld AO has disallowed proportionate interest under section  36(1)(iii).

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  Whether deduction of interest paid on house building loan can be claimed as deduction u/s 24 of the Act ?

A piece of residential  plot is in Wife's name , who has no source of income since she is a Home maker. So wife is the owner of the plot. House Building Loan taken by Husband, who is a salaried person,  with wife's residential plot  as a collateral  security and constructed house on the wife's residential plot.  Monthly House Building Loan EMI ( Principal and Interest) amount paying by the Husband out of his salary amount. The lender Banker has granted House Building Loan in the name of Wife and Husband (jointly ). The query is: Can the husband claim…

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