Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961 – Deduction |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Income Tax Act, 1961 (43 of 1961) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
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 light of the statutory 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 involved for the share issue. Income Tax Act, 1961 – Deduction vis-a-vis income from other sources – Distinction between – Held: If there is any surplus money which is lying idle and it has been deposited in the bank for the purpose of earning interest then it is liable to be taxed as income from other sources but if the income accrued is merely incidental and not the prime purpose of doing the act in question which resulted into accrual of some additional income then the income is not liable to be assessed and is eligible to be claimed as deduction. |
Judge | Hon'ble Mr. Justice R.K. Agrawal |
Neutral Citation | 2018 INSC 403 |
Petitioner | The Commissioner Of Incometax-iv, Ahmedabad |
Respondent | M/s. Shree Rama Multi Tech Ltd. |
SCR | [2018] 3 S.C.R. 927 |
Judgement Date | 2018-04-24 |
Case Number | 6391 |
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