https://www.taxtmi.com/caselaws?id=29662 For rule 1(v) of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the relevant inquiry is the source of the borrowing: it is enough that the lender is a person in a country outside India, and the borrowing transaction need not itself be effected outside India. The court accepted this construction in favour of the assessee. The Tribunal's finding that the borrowed sum was utilised for the creation of capital assets in India was supported by balance-sheets, the directors' report and other materials, and was not perverse. That factual finding was therefore upheld, while the matter was remitted only on the remaining question whether the moneys were borrowed for that purpose. en-us Mon, 24 Nov 1980 00:00:00 +0530 Mon, 15 Mar 2010 13:52:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29662 For rule 1(v) of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the relevant inquiry is the source of the borrowing: it is enough that the lender is a person in a country outside India, and the borrowing transaction need not itself be effected outside India. The court accepted this construction in favour of the assessee. The Tribunal's finding that the borrowed sum was utilised for the creation of capital assets in India was supported by balance-sheets, the directors' report and other materials, and was not perverse. That factual finding was therefore upheld, while the matter was remitted only on the remaining question whether the moneys were borrowed for that purpose. Case-Laws Income Tax Mon, 24 Nov 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29662