1987 (3) TMI 58

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....tion under section 256(2) of the Income-tax Act, 1961, for directing the Tribunal to refer the following questions of law to this court for its opinion : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in allowing deduction for Rs. 20,000 by way of interest by holding that the liability pertains to the year under consideration ? (2) Whether, on the....

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....out of the amount of interest on the ground that that amount related to the preceding year. Though the Appellate Assistant Commissioner had upheld the order passed by the Income-tax Officer, the Tribunal held that the claim of interest payable to the said firm was settled in the accounting year in question and, therefore, it was an expenditure which could be claimed in the assessment year. The Tri....