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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