2007 (7) TMI 90 - SCH - Income Tax

Interest tax Question arises whether interest earned by the assessee-banks on dated Government securities was liable to be assessed u/s 2(7) read with Section 4 of the ITA, 1974 Held that not chargeable to interest tax

Summary

The Supreme Court of India ruled that interest earned by assessee-banks on dated Government securities is not liable to be assessed under the Interest-tax Act, 1974. The court agreed with the decisions of the Bombay High Court and dismissed the civil appeals filed by the Department. No costs were awarded.