1989 (8) TMI 50 - HC - Income Tax

Summary

The High Court of Allahabad ruled that borrowed money cannot be included in the calculation of capital employed under section 80J of the Income-tax Act. This decision was based on a Supreme Court ruling in Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308. The Income-tax Appellate Tribunal's decision favoring the assessee was overturned.