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2017 (2) TMI 457 - HC - Income TaxChargeability of tax upon the interest - Held that:- In the Karnataka High Court decision in the case of Karnataka Urban Infrastructure Development and Finance Corporation [2006 (2) TMI 114 - KARNATAKA High Court] it has been rightly pointed out by the High Court that once it has been found at the level of Tribunal that the interest was income derived out of funds received from the State Government and thus the interest was not taxable as having the same character, that would be a question of fact. We are in respectful agreement with the view expressed by the Karnataka High Court and thus no substantial question of law arises on the said issue. Incentive subsidy - Held that:- It was meant for entrepreneurs and industrialists who had established their units and made certain capital outlay and the assessee was merely required to ensure distribution of subsidies to the industrialists and thus it could not be treated as funds in hand of the assessee as taxable.
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