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2018 (10) TMI 501 - AT - Income TaxChargeability of interest tax on interest derived from various sources - Held that:- Additions of ₹ 20 Lakhs is not sustainable in law. Similarly, interest received from another credit institution amounting to ₹ 4.19 Lakhs is also not susceptible to interest tax in view of the exclusion provided under s.5 of the Act for which the CIT(A) has also concurred with the assessee. This leaves us with interest received from Tata Chemicals Ltd. amounting to ₹ 9,83,219/- and from Alpa Marketing Enterprise amounting to ₹ 21,680/-. In view of the concession granted on behalf of the assessee owing to smallness of the amount, we hold the same to be susceptible to the interest tax. Consequently, the assessee gets relief on account interest income derived from investment in debentures and interest income received from other credit institution aggregating to ₹ 24,19,178/- and other additions are not interfered with.
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