https://www.taxtmi.com/caselaws?id=272541 Security deposits received from customers under forward contract arrangements were not "borrowed money" for capital computation under Rule 2A of the Second Schedule to the Excess Profits Tax Act, 1940. Although the amounts were fixed at the assessee's instance, carried interest, and could be retained or appropriated against contractual breaches or sums due, the transaction did not create the essential lender-borrower relationship. Applied in its commercial sense, the phrase "borrowed money" covered a loan simpliciter, not a deposit made available for business use. The deposits therefore could not be included in the assessee's capital. en-us Mon, 09 Jan 1950 00:00:00 +0530 Mon, 07 May 2018 17:01:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272541 Security deposits received from customers under forward contract arrangements were not "borrowed money" for capital computation under Rule 2A of the Second Schedule to the Excess Profits Tax Act, 1940. Although the amounts were fixed at the assessee's instance, carried interest, and could be retained or appropriated against contractual breaches or sums due, the transaction did not create the essential lender-borrower relationship. Applied in its commercial sense, the phrase "borrowed money" covered a loan simpliciter, not a deposit made available for business use. The deposits therefore could not be included in the assessee's capital. Case-Laws Income Tax Mon, 09 Jan 1950 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272541