https://www.taxtmi.com/caselaws?id=11890 For clause (v) of rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the decisive factor is the real period allowed to the assessee for repayment of the borrowing. A loan originally obtained from a bank and later taken over by a corporation may be treated as a single composite transaction where the repayment arrangement covers the entire borrowing, and the outstanding amount is includible in capital base if the effective repayment period exceeds seven years. Subsequent written extensions of repayment terms may also be read with the original arrangement, and such modified terms can satisfy the seven-year requirement for inclusion in capital computation. en-us Fri, 14 Nov 1997 00:00:00 +0530 Wed, 10 Feb 2010 16:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11890 For clause (v) of rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the decisive factor is the real period allowed to the assessee for repayment of the borrowing. A loan originally obtained from a bank and later taken over by a corporation may be treated as a single composite transaction where the repayment arrangement covers the entire borrowing, and the outstanding amount is includible in capital base if the effective repayment period exceeds seven years. Subsequent written extensions of repayment terms may also be read with the original arrangement, and such modified terms can satisfy the seven-year requirement for inclusion in capital computation. Case-Laws Income Tax Fri, 14 Nov 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11890