1996 (7) TMI 89

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..... e and the following question of law has been referred by the Tribunal for answer by this court : " Whether, under the facts and in the circumstances of the case and in law, the Income-tax Appellate Tribunal was justified to hold that the assessee's claim of deduction of interest on term loan was of allowable nature ? " The assessee is M. P. Audyogik Kendra Vikas Nigam (Raipur) Limited, Raipur. .....

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..... revised returns for the earlier years. The Assessing Officer found that since the method of accounting adopted by the assessee was disapproved after the close of the accounting year, he held that the liability accrued after the accounting period; and, as such, the adjustments claimed for the assessment year 1986-87 were not allowable. The assessee filed an appeal before the Commissioner of Income- .....

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..... he Department approached the Tribunal for referring the aforesaid question of law for answer by this court. The Tribunal has referred the matter for this court's opinion. We have heard learned counsel for parties and perused the record. Though the question has not been properly framed it relates to deduction of interest on term loans and whether it is allowable. It was not permitted by the Asses .....

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