Supreme Court · 2015 INSC 843 · Decided 18 November 2015
M/S. State Bank of Patiala Through General Manager v. Commissioner of Income Tax, Patiala
- Court
- Supreme Court of India
- Citation
- 2015 INSC 843 · [2015] 12 S.C.R. 243
- Case number
- CIVIL APPEAL No. 5212/2007
- Decided
- 18 November 2015
- Bench
- A.K. SIKRI, R.F. NARIMAN (2-judge bench)
- Outcome
- Disposed off
- Case type
- Civil
- Acts & sections cited
- Income Tax Act
Headnote
Interest Tax Act, 1974: B c s.2(7) - Interest payable on default in payment of amounts due under the discounted bill of exchange - Liability to pay tax on such interest under the Act of 1974- Held: Tax not payable - Interest is chargeable to tax under only if it arises directly from a loan or D advance - This is clear from the use of the word "on" ins. 2(7) of the Act - Interest payable "on" a discounted bill of exchange cannot therefore be equated with interest payable "on" a loan or advance. s.2(7)- Guarantee
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