Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 472 - HC - Income TaxInterest u/s 215 of the Act – Deductibility of interest along with income tax liability - Companies (Profits) Surtax Act, 1964 - Whether the Tribunal was legally correct to hold that interest u/s 215 is to be regarded as part and parcel of Income Tax liability – Held that:- The assessee has revised the chargeable profit deducting interest from the total income as per the letter dated 9.6.1987 - Under Rule 2(i) of the First Schedule, tax and liability payable by the company is to be excluded while computing the chargeable profits, interest charged under any section of the Income Tax Act is covered for exclusion from profits assessed to tax - interest was paid as a consequence of default committed by the assessee in discharging its statutory obligation. The interest under sections 215 or 217 has a direct connection with the amount payable as advance tax by charging interest on which the corpus of the tax amount is enlarged - Section 139 (8) or section 215/217 is to be regarded as part and parcel of the liability to pay tax – thus, the same is deductible along with income tax liability while computing the chargeable profits of the company in accordance with the relevant provisions of Companies (Profits) Surtax Act, 1964 – thus, there is no reason to interfere in the findings of the Tribunal – Decided against Revenue.
|