Income Tax Paid on Demand

adjust it against provision created in year AY 16-17 and debit the interest in P&L account.
in case of individual, you have option to route entire amount through capital account
In any other case, route it through P&L account.

also kindly disallow the same from computation of income if it is routed through P&L account

No company did not created any provision in ay 2016-17

Kindly debit the entire expenditure in profit & loss account and exclude the same while computing tax. Also from next time onwards be careful as companies are required to make provision for taxes