https://www.taxtmi.com/caselaws?id=20102 Amounts paid for delayed payment of hundi liabilities and purchase consideration were held not to constitute interest on borrowed capital, because no true borrower-lender relationship existed for those deferred trade payments. The Tribunal was therefore justified in excluding that sum from the pool used for proportionate disallowance under the Income-tax Act. The additional payment under the Gujarat Sales Tax Act was treated as payable for infraction of law, as that point was already covered by an earlier decision and required no fresh reasoning. The reference was answered partly in favour of the assessee and partly in favour of the Revenue. en-us Tue, 20 Jul 1993 00:00:00 +0530 Wed, 11 Nov 2009 16:49:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20102 Amounts paid for delayed payment of hundi liabilities and purchase consideration were held not to constitute interest on borrowed capital, because no true borrower-lender relationship existed for those deferred trade payments. The Tribunal was therefore justified in excluding that sum from the pool used for proportionate disallowance under the Income-tax Act. The additional payment under the Gujarat Sales Tax Act was treated as payable for infraction of law, as that point was already covered by an earlier decision and required no fresh reasoning. The reference was answered partly in favour of the assessee and partly in favour of the Revenue. Case-Laws Income Tax Tue, 20 Jul 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20102