Supreme Court · 2018 INSC 403 · Decided 24 April 2018

The Commissioner of Income Tax-Iv, Ahmedabad v. M/S. Shree Rama Multi Tech LTD.

Court
Supreme Court of India
Citation
2018 INSC 403 · [2018] 3 S.C.R. 927
Case number
CIVIL APPEAL No. 6391/2013
Decided
24 April 2018
Bench
R.K. AGRAWAL, ABHAY MANOHAR SAPRE (2-judge bench)
Outcome
Dismissed
Case type
Civil
Acts & sections cited
Income Tax Act Section 240(b)

Headnote

Income Tax Act, 1961 - Deduction - Share application money deposited in bank - Interest income earned therefrom - Claim for set off of interest income against the public issue expenses - Held: If the share application money that is received is deposited in the bank in mandatory requirement then the accrued interest is not liable to be taxed and is eligible for deduction against the public issue expenses - Such interest earned is inextricably linked with requirement of company to raise share capital and is thus adjustable towards the expenditures

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