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2002 (7) TMI 8 - HC - Income Tax"(i) Whether, Tribunal was right in law in holding that the assessee-company is entitled to a deduction u/s 80J of the Income-tax Act, 1961, in respect of its new unit? - (ii) Whether, Tribunal was right in law in holding that section 40(c)(ii) and not section 40A(5) should be applied in allowing the deduction in respect of salary, perquisites, etc., to the managing director of the assessee-company in the AY 1980-81?" – Both the questions are answered against the Revenue and in favour of the assessee – In respect of validity of charge or mortgage on the plant and machinery, held that the assessee had created a charge on its plant and machinery by entering into a trust deed with the directors, and also registered the charge with the Registrar of Companies as required under the Companies Act and that would suffice to create a charge over the plant and machinery of the assessee's company. Once there is a valid charge over the properties of the company, the disallowance of the interest payments is not correct
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