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2022 (9) TMI 1250 - ITAT DELHITDS u/s 194LD - assessee has invested in rupee denominated non-convertible debentures ('NCDs') of Indian companies from which interest income accrued to the assessee during the subject year offered to tax by the assessee @ 5% in accordance with section 194LD r.w.s. 115A(1)(a)(iiab) - whether debenture should be considered as Bond in absence of any definition of this term in Income-tax Act? - AO took a view that Section 194LD is applicable only in case of interest' from rupee denominated bonds ('RDBs') of Indian company or a Government security whereas the assessee has earned interest from NCD and therefore, a concessional rate of 5% as mentioned in section 194LD was not available thereon - HELD THAT:- We find that the issue is covered in favour of the assessee in the case of DIT Vs. Shree Visheshwar Nath Memorial Public Ch. Trust [2010 (8) TMI 435 - DELHI HIGH COURT] When ld. DR for the Revenue was asked whose exposition on the meaning of word debenture should prevail. She fairly agreed that it is Hon’ble jurisdictional High Court order which is to be followed. Accordingly, respectfully following the precedent, we set aside the orders of the Revenue authorities and decide the issue in favour of the assessee.
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