1997 (11) TMI 46 - HC - Income Tax

Summary

The High Court of Madras held that tax should be levied on the gross interest income received by the assessee from Indian Overseas Bank, Colombo, and not just on the net interest income after deduction of tax at source. The court's decision was based on the principle that tax should be levied on the gross income, as established in a previous case regarding dividend income. The question of law was answered in the negative and in favor of the Revenue.