AKAY ORGANICS LTD. Vs. ITO & ANR.

JUDGEMENT

(1.) THIS is an appeal under section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal dated 21.08.2008 in ITA No. 4769/Mum/2006 relating to the assessment year 1999 -2000. The appellant seeks to raise the following questions of law:

(2.) THE appellant had availed a term loan from SICOM. As per its book of accounts an amount of Rs. 1,46,63,160 was due and payable in respect thereof. The principal sum was Rs. 72 lacs. The interest therefore was Rs. 74,63,160.

(3.) THE appellant claimed deduction of interest on a proportionate basis in the sum of Rs. 46,31,658. The amount was worked out as follows: