https://www.taxtmi.com/caselaws?id=58767 Current accounts maintained by directors and relatives in a company's books are not necessarily "deposits" for section 40A(8) purposes. The majority treated the provision as covering money placed with the company but not confined to formal term deposits, and held that recurring credits, withdrawals, interest postings and fluctuating balances indicated running accounts rather than deposits; the resulting interest disallowance was therefore unsustainable. The dissent read the statutory definition more broadly and considered current account balances to fall within "deposit," which would have supported disallowance. The discussion turns on the statutory meaning of deposit and the legal distinction between current accounts and deposit accounts. en-us Mon, 05 Aug 1985 00:00:00 +0530 Tue, 21 Dec 2010 18:33:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58767 Current accounts maintained by directors and relatives in a company's books are not necessarily "deposits" for section 40A(8) purposes. The majority treated the provision as covering money placed with the company but not confined to formal term deposits, and held that recurring credits, withdrawals, interest postings and fluctuating balances indicated running accounts rather than deposits; the resulting interest disallowance was therefore unsustainable. The dissent read the statutory definition more broadly and considered current account balances to fall within "deposit," which would have supported disallowance. The discussion turns on the statutory meaning of deposit and the legal distinction between current accounts and deposit accounts. Case-Laws Income Tax Mon, 05 Aug 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58767