1991 (8) TMI 47 - HC - Income Tax

Summary

The High Court of Patna ruled that loans and borrowings should not be included in the capital employed for grant of relief under section 80J of the Income-tax Act. The decision was based on a precedent set by the Supreme Court in the case of Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308. The court answered the question in the negative, favoring the Department over the assessee. The judgment was transmitted to the Assistant Registrar, Income-tax Appellate Tribunal, Patna Bench.