https://www.taxtmi.com/caselaws?id=38212 A shareholder's short-term loan was not "loan capital" for computing capital base under section 109(iii)(4) and determining the applicability of section 104. The expression was treated as a commercial concept distinct from an ordinary loan, requiring borrowings from shareholders to have the character of capital, typically through fixed-term arrangements such as debentures, mortgages or loan stock. A loan raised at year-end, without a fixed term and repayable after a few years, did not meet that description. The court held that treating every shareholder loan as loan capital would render the statutory wording redundant and undermine the object of section 104; the issue was answered against the assessee. en-us Wed, 12 Nov 1975 00:00:00 +0530 Sat, 03 Apr 2010 17:39:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38212 A shareholder's short-term loan was not "loan capital" for computing capital base under section 109(iii)(4) and determining the applicability of section 104. The expression was treated as a commercial concept distinct from an ordinary loan, requiring borrowings from shareholders to have the character of capital, typically through fixed-term arrangements such as debentures, mortgages or loan stock. A loan raised at year-end, without a fixed term and repayable after a few years, did not meet that description. The court held that treating every shareholder loan as loan capital would render the statutory wording redundant and undermine the object of section 104; the issue was answered against the assessee. Case-Laws Income Tax Wed, 12 Nov 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38212