https://www.taxtmi.com/caselaws?id=27258 Outstanding unpaid purchase consideration for machinery, even when supported by a bank guarantee and instalment interest, remained unpaid sale price and did not amount to monies borrowed. A borrowing requires a real lender-borrower relationship and acceptance of funds as a loan, which was absent where the arrangement only deferred payment of the machinery price. The proviso to Rule 1(v) was also inapplicable because no borrowing preceded the acquisition of the capital asset. The unpaid amount therefore could not be treated as borrowed capital for inclusion in the surtax capital base. en-us Fri, 01 Mar 1985 00:00:00 +0530 Thu, 11 Feb 2010 17:08:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27258 Outstanding unpaid purchase consideration for machinery, even when supported by a bank guarantee and instalment interest, remained unpaid sale price and did not amount to monies borrowed. A borrowing requires a real lender-borrower relationship and acceptance of funds as a loan, which was absent where the arrangement only deferred payment of the machinery price. The proviso to Rule 1(v) was also inapplicable because no borrowing preceded the acquisition of the capital asset. The unpaid amount therefore could not be treated as borrowed capital for inclusion in the surtax capital base. Case-Laws Income Tax Fri, 01 Mar 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27258