1991 (3) TMI 62 - HC - Income Tax

Summary

The High Court of Allahabad ruled that loans taken should not be excluded from the assessee's capital for calculating deduction under section 80J of the Income-tax Act, 1961. The case involved M/s. Lohia Machines Pvt. Ltd. and followed a previous Supreme Court decision in Lohia Machines Ltd. v. CIT [1985] 152 ITR 308. The judgment favored the Revenue and went against the assessee.