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2004 (6) TMI 32 - MADHYA PRADESH HIGH COURT"Whether, Tribunal was justified in holding that the export subsidy granted to the assessee by the Reserve Bank of India does not lose the character of interest though it is not paid by the borrower and the same is, therefore, includible in chargeable interest under the Interest-tax Act, 1974?" - submission of learned counsel for the assessee was that the amount in question cannot be regarded as an interest within the meaning of section 2(7) of the Interest-tax Act, 1974 – We do not agree. - We answer the question referred against the assessee and in favour of the Revenue. In other words, we hold that the amount received by the assessee from the Reserve Bank of India is chargeable to tax as interest.
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