Provision of interest on loan from state government being ascertained liability cannot be disallowed u/s. 37

Dindayal Magasvargiya Sahakari Soot Girni Ltd. Vs ACIT (ITAT Pune) ITAT Pune held that provision of interest on loan from state government is ascertained liability and hence couldn’t be disallowed under section 37 of the Income Tax Act. Accordingly, the appeal is allowed. Facts- The assessee is a cooperative spinning mill. AO completed the assessment u/s 143(3) r.w.s. 148 of the IT Act by determining total income at Rs.4,32,92,147/-. The above assessed income includes addition on account of disallowance of interest of Rs.2,42,00,000/- payable to Government of Maharashtra being unascertained...