Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (6) TMI 123 - HC - Income TaxInterest received - Bills rediscounting scheme - Section 2(7) read with Section 2(5) and Section 5 of the Interest Tax Act, 1974 - The interest received by the assessee on loans and advances made under the bills rediscounting scheme from different banking companies to which the Banking Regulation Act, 1949 applies does not form part of chargeable interest defined under the Act and no tax is payable on such amount - Therefore, find that the Tribunal below committed substantial error of law in assessing tax on the interest received by the assessee on loans and advances made under the bills rediscounting scheme from different banking companies to which the Banking Regulation Act, 1949 applies by misreading the provisions contained in Sections 5 and 6 of the Act - Hence, set aside the order of the Tribunal below and direct the assessing officer to exclude the amount of interest received by the appellant on loans and advances made under the bills rediscounting scheme - Decided against of assessee.
|