Allowability of Interest liability discharged by way of issuance of shares

RELEVANT PARAGRAPHS 20. We have considered the rival submissions. The claim is in respect of interest on amount borrowed by the erstwhile company namely Flowmore Polyesters Ltd., which amalgamated with the appellant company during the year. There is no dispute to the fact that interest payable by the erstwhile company was not claimed and allowed in terms of section 43B(d) since the amount was not paid by the said company. In view of the scheme of amalgamation Flowmore Polyesters Ltd. Has merged into the assessee company. Therefore, if the assessee company discharged such liability of nterest, ...