Section 43b of it act

As clarified in the Memorandum Explaining the provisions in the Finance Bill, 2006 (Page 3 thereof), the interest converted into loan or borrowing or advance shall be allowed if such interest has been actually paid and any interest which has been converted into a loan or borrowing or advance, shall not be deemed to have been actually paid on account of its conversion into loan, etc. refer circular no. 7/2006 , dated 17-07-2006

refer circular no . 7 / 2006 , dated 17- 07-2006