This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Bills discounted cannot be equated with loan & advances, interest received on default not taxable under Interest Tax Act, 1974: SC
Case Law Details
- Case Name
- State Bank of Patiala Vs CIT (Supreme Court of India)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- Supreme Court of India
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
Brief of the Case
Supreme Court held In the case of State Bank of Patiala vs. CIT that it is well settled that a subject can be brought to tax only by a clear statutory provision in that behalf. Interest is chargeable to tax under the Interest Tax Act, 1974 only if it arises directly from a loan or advance in India. Also the Interest Tax Act, unlike the Income Tax Act, has focused only on a very narrow taxable event which does not include interest payable on default in payment of amounts due under a discounted bill of exchange.
Facts of the Case
The bank makes purchases of bills of exchange fr...
