https://www.taxtmi.com/caselaws?id=21559 For surtax capital computation, a borrowing qualifies only if the loan agreement itself provides for repayment over not less than seven years; the relevant date is the agreement date, not the loan sanction date. On the stated terms, the repayments fell within seven years, so the loans were not eligible for inclusion in capital. The assessee also had to prove that the borrowed monies were actually used to create capital assets in India. A mere statement of intended use was insufficient, and no evidence linked the borrowings to asset additions, so that condition was not established. The surtax exclusion therefore failed. en-us Mon, 23 Mar 1992 00:00:00 +0530 Wed, 25 Nov 2009 13:05:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21559 For surtax capital computation, a borrowing qualifies only if the loan agreement itself provides for repayment over not less than seven years; the relevant date is the agreement date, not the loan sanction date. On the stated terms, the repayments fell within seven years, so the loans were not eligible for inclusion in capital. The assessee also had to prove that the borrowed monies were actually used to create capital assets in India. A mere statement of intended use was insufficient, and no evidence linked the borrowings to asset additions, so that condition was not established. The surtax exclusion therefore failed. Case-Laws Income Tax Mon, 23 Mar 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21559