Broken period interest is allowable as deduction

1. Briefly, in the facts of the case, the assessee had filed the return of income declaring total income of Rs.2,31 ,61 ,482/-. The case of the assessee was taken up for scrutiny. The Assessing Officer during the course of assessment proceedings noted that the assessee had claimed deduction of Rs.16,97,027/- towards broken period interest. The assessee was show caused to explain why the same should be allowed. The show cause notice issued by the Assessing Officer and the submissions of assessee are reproduced in the assessment order. However, the Assessing Officer held that the assessee was no...