Traco Cable Co. Ltd. vs Commissioner Of Income-Tax on 24 September, 1981
2. As regards this question, it is agreed that it has been already answered in respect of a similar question by the decision in Traco Cable Co. Ltd. v. CIT [1982] 138 ITR 385 (Ker). It was held therein that amounts borrowed would have to be deducted for determining the capital employed for the purpose of Section 80J. In view of the above legal position, question No. 1 is answered by holding that the borrowed capital will have to be deducted from the computation of capital for the purpose of Section 80J. The question is, therefore, answered in the negative, in favour of the Revenue and against the assessee.