https://www.taxtmi.com/caselaws?id=70220 The Tribunal ruled in favor of the assessee, finding that the interest accrued to directors did not constitute a deposit or borrowing by the company under s. 40A(8) of the IT Act, 1961. The Tribunal considered the accounting entries and determined that the transactions were akin to running current accounts, not subject to the provision. Citing the Companies Act and a Bombay Tribunal decision, the Tribunal held that the monies from directors were not considered deposits, leading to the allowance of all three appeals and rejecting the disallowance of 15% interest for the assessment years 1977-78 to 1979-80. en-us Fri, 19 Feb 1982 00:00:00 +0530 Wed, 02 May 2018 17:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70220 The Tribunal ruled in favor of the assessee, finding that the interest accrued to directors did not constitute a deposit or borrowing by the company under s. 40A(8) of the IT Act, 1961. The Tribunal considered the accounting entries and determined that the transactions were akin to running current accounts, not subject to the provision. Citing the Companies Act and a Bombay Tribunal decision, the Tribunal held that the monies from directors were not considered deposits, leading to the allowance of all three appeals and rejecting the disallowance of 15% interest for the assessment years 1977-78 to 1979-80. Case-Laws Income Tax Fri, 19 Feb 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70220