If Grant of loan is one for the purpose of purchase of capital asset which was also utilised for the same is only a capital receipt

The object of the transaction namely the loan transaction is towards the purchase of the capital asset as against the running of the regular business such a receipt would be a capital receipt. Therefore, by applying the said principle laid down by the Honourable Apex Court there is no doubt that the grant of loan being one for the purpose of purchase of capital asset which was also utilised for the same is only a capital receipt. Tax Case Appeal filed Under Section 260-A of the Income-Tax Act, 1961, against the order of the Income Tax Appellate Tribunal “B” Bench, Chennai, passed i...