1994 (1) TMI 63 - HC - Income Tax

Borrowed Capital, Computation Of Capital, Industrial Company, Industrial Undertaking, Special Deduction

Summary

The High Court of Madras ruled on an appeal regarding the treatment of borrowed capital for relief under section 80J, classification of the assessee as an industrial company, and treatment of export incentives and duty drawback as income. The court concluded that borrowed capital cannot be treated as part of capital for relief under section 80J. The assessee was deemed an industrial company engaged in processing goods, and export incentives and duty drawback were considered part of industrial profit. The judgment favored the assessee.