Judgement

SIKRI, J. : This appeal by special leave is directed against the judgment of the High Court of Judicature at Madras answering the following question of law in favour of the respondent.

"Whether on the facts and in the circumstances of the case, the Tribunal was right, in law in holding that the sum of Rs. 84,633 expended by the assessee in obtaining the loan or any part thereof is an allowable expenditure?"

2. The facts and circumstances of the case as stated by the Tribunal in the statement of the case are as follows : The appellant, India Cements Limited. Madras hereinafter referred to as the assessee is a public limited company. The question arises in respect of the assessment year 1950-51, accounting period April 1, 1949 to March 31, 1950. During the accounting year it obtained a loan of 40 lakh, of rupees from the Industrial Finance Corporation of India. This loan was secured by a charge on the fixed assets of the company. Since, Mr. S. T. Desai; the learned counsel for the respondent, has disputed some facts as stated by the Appellate Tribunal, it would be convenient to give these facts in the words of the Appellate Tribunal. It is stated in the statement of the case t