Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (8) TMI 700 - MADRAS HIGH COURTInterest on mortgage loan - held that:- the assessee cannot take advantage of guarantor-debtor company being sick company. As rightly pointed out by the Tribunal, the situation which prevailed at the time of sanctioning of the loan continued even thereafterwards; ultimately the assessee went in for the assignment of the debt in favour of the third party through tripartite agreement, to which the assessee as well as borrower company were parties. - Decided against the assessee. Regarding distribution of income - held that:- once the interest income is directed to be assessed at Rs.52.50 lakhs for each of the assessment years starting from 2000-01 to 2002-03, as rightly pointed out by the Assistant Commissioner of Income Tax in her communication to the Standing Counsel, the Revenue would not be justified in taxing the entire interest income again for the year 2003-04. Thus, with the interest income of Rs.157.50 crores spread over from the assessment year 2000-01 onwards, the assessment of the said amount for the assessment year 2003-04 cannot be sustained.
|