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2016 (12) TMI 417 - HC - Income TaxInterest tax on interest receivable - non-taxable interest - accrual of interest - Held that:- Admittedly, prior to 1.10.1991, the assessee was not liable to interest tax. The interest tax is also collectible from the clients. It is confirmed by the assessee that no interest tax has been collected by it for the period prior to 1.10.1991. We, therefore, hold that even if the interest for the earlier period was collected after 1.10.1991, no interest tax was liable on the interest pertaining to the period when the assessee was not liable to interest tax. The conclusion reached by the Tribunal as above is correct, regardless of what the accounting system of the assessee may have been. The language of the Statute cannot be stretched to mean that even amounts prior to the date in the amendment dated 01.10.1991 could have been taxed. - Decided in favour of assessee
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