Assessee extended interest on unsecured debentures payable during year to LIC Mutual Fund for another two years.  It claimed deduction of interest payable to LIC Mutual Fund.  Assessing Officer  disallowed interest on ground that it had not been paid within stipulated period.  Tribunal held that LIC Mutual Fund was a public financial institution covered under section 43B and sustained order of Assessing Officer. On appeal the Court held taht since in view of language of section 4A of Companies Act, 1956 and section 43B it was evident that LIC Mutual Fund was not public financial institution, interest on unsecured debenture payable by assessee to LIC Mutual Fund is  not covered by section 43B and it is allowable  as deduction.  The Tribunal has committed a manifest error of law to hold that LIC Mutual Fund is a public financial institution under section 43B. The disallowance of interest invoking the provisions of section 43B cannot be sustained.  (AY. 2009-10)