FENNER INDIA LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Tribunal referred the following question for the opinion of this court under section 256(1) of the Income -tax Act, 1961.

(2.) IN respect of the assessment of the assessee for the assessment year 1976 -77, the assessee claimed deduction of interest paid under section 220(2) of the Income -tax Act, amounting to Rs. 6, 104. The Income -tax Officer pointed out that two instalments of interest, namely, Rs. 3, 155 and Rs. 2, 949 paid by way of interest under section 200(2) of the Income -tax Act cannot be allowed as deduction. Accordingly, the Income -tax Officer disallowed the same