Kerala HC reverses ITAT
order for AY 2009-10, rules that interest income from bank deposits accrued but
not due and hence not credited to assessee’s (a Public sector undertaking)
account is taxable; Assessee had disclosed Rs. 3.23 cr accrued in the balance
sheet as interest receivable on fixed deposits but excluded the same in its tax
return claiming that it was only a hypothetical income and the right to receive
had not accrued; Rejects assessee’s stand that since the b ank neither
credited/paid the interest nor deducted TDS u/s. 194A, the question of accrual
did not arise; HC observes that assessee follows mercantile system of
accounting, further observes that assessee had exercised the option to let the
interest accumulate to the deposit and thereby earned compound interest by the
end of the deposit term; Clarifies that the Bank's liability to deduct tax at
source arises only when it pays the interest and not on periodical accrual of
interest, remarks that “the interest income that accrued cannot, by any stretch
of imagination, be termed as hypothetical income”, relies on SC rulings in
Tuticorin Alkali Chemicals and Fertilizers, Keshav Mills Ltd., distinguishes
assessee’s reliance on SC ruling in Excel Industries Ltd.:HC
Subscribe to:
Post Comments (Atom)
Department of Commerce issues clarification on newly inserted Rule 11B of SEZ Rules
This Tax Alert summarizes a recent instruction issued by the SEZ Division, Department of Commerce, clarifying various concerns relating t...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
Introduction It's important for taxpayers to have a clear understanding of the available allowances and deductions, as they can grea...
-
· Mumbai ITAT in the case of Mukesh Harilal Mehta held that Exemption U/S 54 cannot be denied merely due to mistake by the developer.
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
Earlier this year, the Mauritius Government approved the amendment to the India – Mauritius tax treaty, aligning it with the proposal of th...
-
Slump sale is transfer of one or more business undertakings for a lump sum consideration, without assigning individual values to the each...
-
An eminent concern within the GST framework pertains to the entitlement of Input Tax Credit (ITC) concerning expenditures associated with In...
-
Introduction The law relating to companies is laid down in Companies Act, 2013 and the rules made thereunder and t...
-
Facts · India company has overseas subsidiary companies and there may arise requirement wherein customer execution requires the inv...
No comments:
Post a Comment