2008 (12) TMI 375

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....vember 26, 2008, we had passed the following order : 2. The assessee had taken a term loan for his project for manufacturing toners and developers. The total interest liability in respect of the borrowings from banks and financial institution was Rs. 13,82,29,841 for the assessment year 1998-99 and Rs. 3,02,58,926 for the assessment year 1999-2000. In the year in question, i.e, the assessment yea....

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....al borrowing at the end of the accounting year. The issue that has been sought to be raised in the present appeal is the treatment to be given to this increase in liability. According to the appellant/Revenue, it should be treated in the capital account whereas on behalf of the assessee/respondent it is contended that it falls within the revenue account. It was specifically pointed out before the ....