https://www.taxtmi.com/caselaws?id=24637 The exception to disallowance for secured borrowings applies only where a mortgage, charge or pledge has actually been created over company assets before the relevant date. A board resolution authorising future security, or its lodgment with the Registrar of Companies, is only an intimation and does not itself create a charge. A later registration certificate cannot cure the absence of a completed security, and an equitable mortgage requires proof of deposit of title deeds or delivery of title documents with intent to secure the debt. On these facts, no completed security was established, so the exception was unavailable and the interest disallowance stood justified. en-us Thu, 25 Feb 1988 00:00:00 +0530 Thu, 21 Jan 2010 13:38:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24637 The exception to disallowance for secured borrowings applies only where a mortgage, charge or pledge has actually been created over company assets before the relevant date. A board resolution authorising future security, or its lodgment with the Registrar of Companies, is only an intimation and does not itself create a charge. A later registration certificate cannot cure the absence of a completed security, and an equitable mortgage requires proof of deposit of title deeds or delivery of title documents with intent to secure the debt. On these facts, no completed security was established, so the exception was unavailable and the interest disallowance stood justified. Case-Laws Income Tax Thu, 25 Feb 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24637