1994 (7) TMI 18

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..... ut of its order dated June 5, 1985, in respect of the assessment year 1983-84 under section 256(1) of the Income-tax Act, 1961 : " Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that the interest paid to directors on their deposits in running accounts was not disallowable to the extent prescribed under section 40A(8) of the Act?" The m .....

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..... is that the term for which payment has been made in the case of a fixed deposit is a fixed one, whereas, in the case of a current account, no time is fixed therein and this distinction will not take the amount outside the purview of deposit used in the clause. Assistance cannot be taken from the Companies (Acceptance of Deposits) Rules, 1975, because the said Rules came into force on February 3, .....

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