1996 (4) TMI 106 - HC - Income Tax

Summary

The High Court of Allahabad heard an income-tax reference case involving a corporation set up by the U.P. Government with loans totaling Rs. 96,43,664. The Income-tax Officer initially ruled against the inclusion of the Rs. 86,50,000 loan in the computation under the Surtax Act, but the Appellate Assistant Commissioner allowed the claim. The Tribunal upheld this decision, stating that the loan was used to create capital assets. The High Court ruled in favor of the assessee, stating that the loan did create a capital asset.