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)
No Permanent Establishment Unless Proven by the Revenue
The Income Tax Appellate Tribunal (Delhi Bench) recently in the case of SAIC clarified an important principle in international taxation: th...
-
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...
-
The Central Board of Direct Taxes (CBDT) released the Draft Income Tax Rules, 2026 on February 7, 2026. It has invited suggestions and opi...
-
These instructions are guidelines for filling the particulars in this Return Form. In case of any doubt, please refer to relevant provisi...
-
The posting had been move to another website. Please click the link below to get the access of the same. https://taxofindia.wordpress....
-
This Tax Alert summarizes a recent ruling of Customs, Excise and Service Tax Appellate Tribunal, Ahmedabad (CESTAT) [1] . The issue invo...
-
On payment of Contractor, Publisher, Ad-Service Provider etc. above Rs. 20000/- in the financial year, then the TDS is must be deducted u...
-
Anna Covaco is trying to sell her ancestral property - a piece of land worth nearly Rs 10 crores in today's market. Being a senior cit...
-
PENSION SCHEME IN CASE OF AN E MPLOYEE JOINING CENTRAL GOVERNMENT OR ANY OTHER EMPLOYER ON OR AFTER JANUARY 1,2004 New pension s che...
-
An eminent concern within the GST framework pertains to the entitlement of Input Tax Credit (ITC) concerning expenditures associated with In...
-
Section 68 -Cash credits Section 69 -Unexplained investments Section 69A - Unexplained money, etc Section 69B -Amount of investme...
No comments:
Post a Comment