Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2007 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (8) TMI 266 - HC - Income TaxWhether loan given by a company to its director without any interest taxable under the provisions of the Income-tax Act, 1961? Held that:- Under section 2(24)(iv), "income" includes the value of any benefit or perquisite whether convertible into money or not, obtained from a company either by a director or a person, having substantial interest in the company or relative of a director or such person, and any sum paid by any such company in respect of any obligation which, but for such payment, would have been payable by the director or other person. The aforesaid notices had been issued presumably to rope in the assessee under section 2(24) (iv). The Division Bench held that the interest-free loan could not be said to be "income". Such finding was noted with approval by the Supreme Court. We do not find any scope of disagreement on that score. Hence, the impugned notices are liable to be quashed and set aside. Appeal allowed.
|