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)
Identifying a Drafting Error in GST Amnesty Provisions
Provision Regarding Amnesty Scheme Section 128A was introduced into the Central Goods and Services Tax (CGST) Act by the Finance Act, 2024,...
-
In this article, for the benefit of our reader’s we have come up with detailed FAQ on procedures of issuance, requirement of Form 15CA an...
-
1. Situation I. Tax Department Summons An employee received a summons from the tax department demanding an explanation for failing to discl...
-
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...
-
In this post, I will discuss Secretarial Standards related to Proxies under SS – 2. Right to Appoint: A Member entitled to attend and ...
-
Many of us rely on home loans to purchase residential property, but are you fully aware of how tax laws impact your financial strategy? Unde...
-
Summary of the relevant updates is provided below for ease of your reference: A) Proposals relating to GST law, Compliances an...
-
Particulars Singapore Hong Kong Corporate Tax rate 17% 16.5%. Numb...
-
The circular of the Board dt. 28.06.1965 No. 17 (XL-36), provides for inspection fees and fees for certified copies of assessment and...
-
The posting had been move to another website. Please click the link below to get the access of the same. https://taxofindia.wordpress....
No comments:
Post a Comment