1985 (3) TMI 5 - HC - Income Tax

Summary

The High Court of Madhya Pradesh ruled on a consolidated reference under the Income-tax Act, 1961. The court answered the questions of law as follows: 1) Borrowed capital should be considered in computing capital for deduction under section 80J. 2) The deduction at 6% per annum is applicable for the full year even if the undertaking worked for less than 12 months. The judgment referenced previous court decisions and concluded in favor of the Department on the first question and in favor of the assessee on the second question.