https://www.taxtmi.com/caselaws?id=17417 Amounts received by a company for share allotment, but retained without allotment and treated by it as deposits on which interest was paid, can be regarded as deposits for disallowance under section 40A(8), making 15% of the interest expenditure disallowable. For computation of capital employed under section 80J, the prescribed basis for depreciable assets is written down value, not actual cost, in line with the Supreme Court ruling in Lohia Machines Ltd. v. Union of India. On both points, the reference was answered in favour of the Revenue. en-us Thu, 03 Apr 1997 00:00:00 +0530 Tue, 22 Sep 2009 12:41:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17417 Amounts received by a company for share allotment, but retained without allotment and treated by it as deposits on which interest was paid, can be regarded as deposits for disallowance under section 40A(8), making 15% of the interest expenditure disallowable. For computation of capital employed under section 80J, the prescribed basis for depreciable assets is written down value, not actual cost, in line with the Supreme Court ruling in Lohia Machines Ltd. v. Union of India. On both points, the reference was answered in favour of the Revenue. Case-Laws Income Tax Thu, 03 Apr 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17417