TMI Blog1983 (9) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, the assessee was entitled to relief under section 80J of the Income-tax Act, 1961, on the basis of inclusion in the amount of capital employed, as understood within the meaning of rule 19A(2) of the Income-tax Rules, 1962, the amount of Rs. 6,98,057 representing payments made for certain capital assets ? (2) Whether, on the facts and in the circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... few facts may be set out. We are concerned in this reference with computation of capital under s. 80J for the assessment year 1968-69. An amount of Rs. 20,310 described as " interest on loan " was one of the items of liabilities and, therefore, deducted by the ITO from the value of the total assets. Aggrieved by this exclusion, the assessee carried the matter before the AAC. It was contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. [1978] 115 ITR 56 (Bom). In the said judgment, it has been held that only debts that had become due for payment on the relevant date should be excluded while computing the capital for the purpose of s. 80J of the I.T. Act, 1961. In the said decision, distinction was drawn between " debts owed " and " debts due ". Since it is the admitted position that this amount of interest was not a debt due ..... X X X X Extracts X X X X X X X X Extracts X X X X
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