1988 (4) TMI 1 - HC - Income Tax

Summary

The High Court of Rajasthan decided in favor of the Revenue in a reference under section 256(1) of the Income-tax Act, 1961 regarding deduction under section 80J. The Court held that borrowed money should not be treated as part of the capital employed in the new industrial undertaking. The decision was based on the Supreme Court case of Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308. The assessee's appeal was dismissed, and no costs were awarded.