CIT Vs UTI Bank Ltd (Supreme Court of India)
SC upheld its judgment in ‘South Indian Bank Ltd. v. Commissioner Of Income Tax’ and held that the proportionate disallowance of interest is not warranted, under Section 14A of Income Tax Act for investments made in tax free bonds/ securities which yield tax free dividend and interest to Assessee Banks in those situations where, interest free own funds available with the Assessee, exceeded their investments.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
In view of the findings of fact noticed by the High Court, the legal issue relating to disallowance under Section 14A of the Income Tax Act, 1961 would be covered against the Revenue in view of judgment of this Court in ‘South Indian Bank Ltd. v. Commissioner Of Income Tax’ [( 2021) 10 SCC 153].
Recording the aforesaid the appeal is dismissed without any order as to costs.
Pending application(s), if any, shall stand disposed of.
The appeal is dismissed in terms of the signed order.
Pending application(s), if any, shall stand disposed of.
