https://www.taxtmi.com/caselaws?id=19276 Interest paid to directors on balances in running accounts was treated as interest on deposits for disallowance under the Income-tax Act because the court construed "deposit" broadly to include amounts placed in current or running accounts with the company. The absence of a fixed term did not remove such balances from the statutory expression, and the exclusion in the Companies (Acceptance of Deposits) Rules, 1975 was read as confirming that director-related amounts otherwise fall within the ordinary meaning of deposit unless specifically exempted. The interest was therefore disallowable, and the reference was answered in favour of the Revenue. en-us Thu, 21 Jul 1994 00:00:00 +0530 Thu, 05 Nov 2009 11:40:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19276 Interest paid to directors on balances in running accounts was treated as interest on deposits for disallowance under the Income-tax Act because the court construed "deposit" broadly to include amounts placed in current or running accounts with the company. The absence of a fixed term did not remove such balances from the statutory expression, and the exclusion in the Companies (Acceptance of Deposits) Rules, 1975 was read as confirming that director-related amounts otherwise fall within the ordinary meaning of deposit unless specifically exempted. The interest was therefore disallowable, and the reference was answered in favour of the Revenue. Case-Laws Income Tax Thu, 21 Jul 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19276