https://www.taxtmi.com/caselaws?id=15010 A valid charge over company assets can be created by a hypothecation arrangement supported by corporate resolution and registration under the Companies Act, even if the deed is not registered under the Indian Registration Act, because the security may be inferred from the parties' conduct and the transaction structure. Where the borrowings are so secured, they fall within the exclusion for secured loans and are not treated as deposits for the purpose of disallowance of interest under section 40A(8) of the Income-tax Act, so the interest was not disallowable. en-us Thu, 30 Apr 1998 00:00:00 +0530 Mon, 27 Jul 2009 16:10:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15010 A valid charge over company assets can be created by a hypothecation arrangement supported by corporate resolution and registration under the Companies Act, even if the deed is not registered under the Indian Registration Act, because the security may be inferred from the parties' conduct and the transaction structure. Where the borrowings are so secured, they fall within the exclusion for secured loans and are not treated as deposits for the purpose of disallowance of interest under section 40A(8) of the Income-tax Act, so the interest was not disallowable. Case-Laws Income Tax Thu, 30 Apr 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15010