Assessee-company had raised a term loan from Gujarat Industrial Investment Corporation Ltd. (GIIC) in year 1973 for acquisition of new plant and machinery. The interest was provided in the books of account, however the payment was not made hence the interest was disallowed. As per the terms of the OTS the interest paid for earlier years claimed as deduction which was disallowed. On appeal the Tribunal held that interest paid is allowable as deduction.  (AY. 2010-11)