https://www.taxtmi.com/caselaws?id=19836 Debentures placed with named financial institutions were not debentures issued to the public and therefore fell outside rule 1(iv) of the Second Schedule to the Companies (Profits) Surtax Act, 1964. Borrowings evidenced by debentures from specified financial institutions remained within rule 1(v) where the funds were used for creating a capital asset in India and the repayment condition did not require discharge within less than seven years. A mere option to convert part of the debenture into equity did not amount to a contractual obligation to repay within seven years. The assessee was entitled to include the full amount in its capital base for surtax purposes. en-us Thu, 09 Dec 1993 00:00:00 +0530 Tue, 10 Nov 2009 11:34:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19836 Debentures placed with named financial institutions were not debentures issued to the public and therefore fell outside rule 1(iv) of the Second Schedule to the Companies (Profits) Surtax Act, 1964. Borrowings evidenced by debentures from specified financial institutions remained within rule 1(v) where the funds were used for creating a capital asset in India and the repayment condition did not require discharge within less than seven years. A mere option to convert part of the debenture into equity did not amount to a contractual obligation to repay within seven years. The assessee was entitled to include the full amount in its capital base for surtax purposes. Case-Laws Income Tax Thu, 09 Dec 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19836