https://www.taxtmi.com/caselaws?id=27474 Amounts payable solely in consideration of share allotment are not treated as borrowed money or a debt for capital-computation purposes under section 80J, because the company's obligation is to complete the share issue rather than repay cash. A provision for future gratuity based on actuarial valuation is deductible where it represents the discounted present value of an existing and reasonably ascertainable liability, even if payment falls due later. On these principles, the share-linked plant and machinery balance was excluded from debt treatment, while the actuarially computed gratuity provision was allowable as a deduction. en-us Wed, 20 Apr 1983 00:00:00 +0530 Sat, 13 Feb 2010 10:59:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27474 Amounts payable solely in consideration of share allotment are not treated as borrowed money or a debt for capital-computation purposes under section 80J, because the company's obligation is to complete the share issue rather than repay cash. A provision for future gratuity based on actuarial valuation is deductible where it represents the discounted present value of an existing and reasonably ascertainable liability, even if payment falls due later. On these principles, the share-linked plant and machinery balance was excluded from debt treatment, while the actuarially computed gratuity provision was allowable as a deduction. Case-Laws Income Tax Wed, 20 Apr 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27474