https://www.taxtmi.com/caselaws?id=39184 Monies borrowed to discharge earlier loans used for acquiring machinery were held not to be borrowings for the creation of a capital asset in India under the proviso to item (v) of paragraph 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. The proviso was read to require that the borrowing itself bring the capital asset into existence in India, and the expression "capital asset" was taken from section 2(14) of the Income-tax Act, 1961. A later borrowing used only to repay acquisition debts, or a notional increase in assets from liquidation of liabilities, did not satisfy that requirement, so the amount was excluded from capital computation. en-us Tue, 31 Aug 1976 00:00:00 +0530 Tue, 13 Apr 2010 15:30:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39184 Monies borrowed to discharge earlier loans used for acquiring machinery were held not to be borrowings for the creation of a capital asset in India under the proviso to item (v) of paragraph 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964. The proviso was read to require that the borrowing itself bring the capital asset into existence in India, and the expression "capital asset" was taken from section 2(14) of the Income-tax Act, 1961. A later borrowing used only to repay acquisition debts, or a notional increase in assets from liquidation of liabilities, did not satisfy that requirement, so the amount was excluded from capital computation. Case-Laws Income Tax Tue, 31 Aug 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39184