2001 (9) TMI 45

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..... JAYASIMHA BABU J. -A mere postponement of liability to pay interest does not amount to discharge whether actual or constructive. The Tribunal has rightly rejected the claim that the consent of the lender -a public financial institution-to convert the outstanding interest into a term loan liability, which is to be paid in instalments in future years, would amount to constructive discharge of the ....

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....s by the State Governments under their deferral schemes may be allowed as a deduction in the assessment for the previous year in which such conversion has been permitted by or under the Government orders. Counsel contended that the principle embodied therein would apply to the case of interest payable to public financial institutions as well. The circular relied on is one which is issued having....