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2015 (9) TMI 1289 - AT - Income TaxTaxation on interest whether interest income received by the assessee has already been transferred to the beneficiaries? - Held that:- We find it appropriate to remit the issue back to the Assessing Officer to consider the issue afresh, particularly, whether, the assessee has transferred the income earned by it to the beneficiaries or not? If the very same income is taxed in the hands of beneficiaries, then it cannot be taxed in the hands of the assessee. Further, if the assessee has not able to produce relevant details to satisfy the Assessing Officer that the interest amount is transferred to the beneficiaries, the same amount may be taxed in the hands of the assessee as its income in accordance with law. We further direct the Assessing Officer that if the assessee has incurred any expenditure relating to earning the interest income, the same may be allowed as business expenditure, if the activity of the assessee is treated as business activity. Decided in favour of assessee for statistical purposes.
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