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TMI Blog1998 (3) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... stion of law has been referred to us. The question so referred to us arises out of the assessment of the respondent's income for the assessment years 1980-81 to 1982-83, and is as to whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the amounts left with the company by the directors and shareholders cannot be considered as deposits so as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g section 40A(8) of the Act. That decision applies to the facts of this case as well. It was not the case of the assessee before the authorities that the directors and shareholders concerned had not made any deposit. The argument that was put forth was that no fresh deposit had been made during the previous year relevant to the year of assessment and, therefore, interest paid on the opening ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore be restricted only to interest paid on the deposits received during the year of account. It applies to all expenditure incurred by way of interest, in the relevant year of account in respect of all deposits received by the company irrespective of the year in which the deposit was received. Learned counsel for the assessee, however, contended that the earlier decision of this court had o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctors for the use of the company and on which interest is paid by the company has been held to be deposit by this court in the case of Khivaraj Motors Ltd. [1997] 227 ITR 475. We do not see any reason to take a different view. The assessee has not placed any material before the authorities to show that the amount left with the company by the directors and shareholders was not meant for the use of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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