1991 (1) TMI 101

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....reign loan at the rate of exchange available on the relevant date ? (ii) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in upholding the Commissioner of Income-tax (Appeals') order who directed the Income-tax Officer to make adjustment for relief allowed in the income-tax assessment ?" It is admitted by both sides that the answer to the second question depends upon the answer to the first question and if the answer to the first question is against the Revenue, the second question will also have to be answered against the Revenue. The assessee obtained a long-term loan from the Industrial Credit and Investment Corporation of India and claimed the benefit for the assessment years 1....

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....ner (Appeals) had no authority to direct recomputation of the capital. The Tribunal affirmed the order of the Commissioner of Appeals. Hence, these references at the instance of the Revenue. Mr. Chandrakumar, learned counsel for the Revenue, referred to the Second Schedule to the Act wherein the rules for computing the capital of a company for the purpose of surtax are found. Clause (v) of rule 1 reads thus: " (1) Subject to the other provisions contained in this Schedule, the capital of a company shall be the aggregate of the amounts, as on the first day of the previous year relevant to the assessment year, of ... (i) to (iv) omitted as unnecessary. (v) any moneys borrowed by it from Government or the Industrial Finance Corpora....