https://www.taxtmi.com/caselaws?id=15216 The High Court of Madras ruled in favor of the Revenue, holding that amounts left with the company by directors and shareholders constitute deposits subject to section 40A(8) restrictions under the Income Tax Act. The court emphasized that interest paid on the opening balance to the credit of shareholders and directors falls within the purview of section 40A(8), irrespective of when the deposit was received. The decision aligned with the precedent set in the case of Khivaraj Motors Ltd., establishing that such amounts should be considered as deposits attracting the provisions of the Act. en-us Tue, 31 Mar 1998 00:00:00 +0530 Mon, 03 Aug 2009 17:24:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15216 The High Court of Madras ruled in favor of the Revenue, holding that amounts left with the company by directors and shareholders constitute deposits subject to section 40A(8) restrictions under the Income Tax Act. The court emphasized that interest paid on the opening balance to the credit of shareholders and directors falls within the purview of section 40A(8), irrespective of when the deposit was received. The decision aligned with the precedent set in the case of Khivaraj Motors Ltd., establishing that such amounts should be considered as deposits attracting the provisions of the Act. Case-Laws Income Tax Tue, 31 Mar 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15216