Allowability- interest payable on deposits to bank

SUMIT JHANWAR (CHARTERED ACCOUNTANT) (32 Points)

26 August 2009  
Dear friends can somebody tell me exact section of I T Act and some case laws which may prove that provision made by a bank for "interest payable on deposits" is deductible in assessment of bank. I know it is allowable but the A.O. is disallowing it since it is not actually paid and provision is not allowable. Its URGENT. Thanks