https://www.taxtmi.com/caselaws?id=49731 Amounts received from customers under the first arrangement were advance trading receipts, because they were linked to contract deliveries, adjusted against the price of goods, and did not create any independent obligation to repay an equivalent sum; they were therefore not borrowed money under Rule 2A and the answer was against the assessee. Under the revised arrangement, the deposits were retained during the business relationship, carried interest, were not adjusted against contract price, and repayment of an equivalent sum was contemplated; these features created a debtor-creditor relationship and the receipts were borrowed money under Rule 2A, with the answer in favour of the assessee. en-us Fri, 23 Jan 1953 00:00:00 +0530 Fri, 12 Sep 2014 07:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49731 Amounts received from customers under the first arrangement were advance trading receipts, because they were linked to contract deliveries, adjusted against the price of goods, and did not create any independent obligation to repay an equivalent sum; they were therefore not borrowed money under Rule 2A and the answer was against the assessee. Under the revised arrangement, the deposits were retained during the business relationship, carried interest, were not adjusted against contract price, and repayment of an equivalent sum was contemplated; these features created a debtor-creditor relationship and the receipts were borrowed money under Rule 2A, with the answer in favour of the assessee. Case-Laws Income Tax Fri, 23 Jan 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49731