1981 (4) TMI 16 - HC - Income Tax

Summary

The Revenue applied under s. 256(2) of the I.T. Act to direct the Tribunal to state a case regarding the deduction of interest by the assessee. The Tribunal allowed the interest deduction for the assessment year in question, finding that the liability to pay interest arose when the default was discovered by the assessee due to terms of compromise. The High Court dismissed the Revenue's application as no question of law arose from the Tribunal's factual determination.