2008 (8) TMI 1043 - SCH - Income Tax

Summary

In the Supreme Court case cited as 2008 (8) TMI 1043 - SC, Justices Ashok Bhan and V. S. Sirpurkar presided over the appeals. The central legal issue was whether, in apportioning deductible expenses from interest on securities for a banking company under Section 20(1)(i) of the Income Tax Act, 1961, the expenses allowable under Sections 30, 31, 36, and 37 are subject to the limitations imposed by Sections 40A(3), 40A(5), and 44C. The Court resolved this issue in favor of the assessee, ruling against the Revenue. As a result, the appeals were dismissed, and each party was ordered to bear its own costs. The decision was consistent with the reasoning provided in the Court's earlier order in Civil Appeal No. 1533 of 2006.