Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2005 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (2) TMI 67 - PUNJAB AND HARYANA HIGH COURTComputation of capital employed under section 80J - "Whether Tribunal was right in law in holding that the share application money of Rs. 3,05,000 received, but pending allotment on the first day of the computation period, i.e., May 13, 1979, is not to be treated as part of the capital for the purposes of computation of capital employed under section 80J?" - It is clear that the amount of share application money can only be deducted out of the value of assets, if it were to be treated as "borrowed money" or "debt owed," by the assessee. - The process of allotment of shares was still not over, there was no debt in existence owed by the assessee to any applicant on the first day of the computation period. - We, therefore, answer the question in the negative, i.e., in favour of the assessee and against the Revenue.
|