Allowability of interest due and payable to financial institution u/s. 43B of Income Tax Act, 1961

RELEVANT PARAGRAPH We do not find any error in the approach of the authorities below. Merely because the interest was debited in the books of accounts maintained on mercantile basis would not mean that the interest had become due and accrued because admittedly the interest liability would become due not during the relevant previous year but only for the first time on 18.11.1996. Thus, interest cannot be said to have accrued to become due and payable in the relevant previous year. The stand of the assessee is incongruous because on the one hand it claims that interest became due and accrued in ...