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2012 (8) TMI 158 - HC - Income TaxInterest paid on income-tax refund - does it bears the character of income and is exigible to tax ?- Held that:- Unless there is an exact indication in the Income Tax Act itself, that interest payable on income tax refund amounts fulfill the basic character as income (defined under Section 2(24) of the Income Tax Act) cannot be ignored - It is no doubt true that this amount cannot be treated as interest income since the assessee did not earn it through conscious choice or voluntarily, nor was it engaged in the activity of investing its amount and earning interest but the basic characteristic of income being what it is, the amount received towards statutory interest has to be subject to tax under the head "income from other sources" & and is exigible to tax - in favour of revenue.
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