2000 PLP 3333 (PTD)
COMMISSIONER OF INCOME-TAX Versus R. RAMANATHAN CHETTIAR
| Citation | 2000 PLP 3333 (PTD) |
| Forum / Court | 237 I T R 441 |
| Bench Members | N. V Balasubramanian and P. Thangavel, JJ |
| Parties | COMMISSIONER OF INCOME-TAX Versus R. RAMANATHAN CHETTIAR |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 2000 PLP 3333 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2000 PLP 3333 (PTD)?
The case was heard and decided by the 237 I T R 441 bench comprising: N. V Balasubramanian and P. Thangavel, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2000 PLP 3333 (PTD) (COMMISSIONER OF INCOME-TAX Versus R. RAMANATHAN CHETTIAR). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Interest from foreign country-- Tax deducted at source in foreign country on interest income
Interest income before deduction of tax at source was taxable
Indian Income Tax Act, 1961. On a reference whether the Tribunal was right in holding that only net interest income received by the assessee from Indian Overseas Bank, Colombo, after deduction of tax at source was taxable: Held, that the Tribunal was not correct in holding that tax could be levied only on net interest income received after deduction of tax at source. Tax was leviable with reference to interest income, before deduction of tax at source. A.F.W. Low v. CIT (1995) 211 ITR 213 (Mad.) applied. C.V. Rajan for the Commissioner. P.P.S. Janarthana Raja for the Assessee.
Judgment & Decree
N.V. BALASUBRAMANIAN, J.
Pursuant to the directions of this Court in T.C.P. No 358 of 1983, dated January 23, 1984, the Appellate Tribunal has stated a case and referred the following question of law for our consideration: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that only the net interest income from Indian Overseas Bank, Colombo, after deduction of tax deducted at source should be included in the assessee's case and not the gross interest?" The point that arises is whether the net interest income received by the assessee from the Indian Overseas Bank, Colombo, after deduction of tax at source is taxable or whether the gross interest income is taxable. The Appellate Tribunal held that tax can be levied only on the net income received after granting deduction of tax at source in Srilanka. This Court, however, in A.F.W. Low v. CIT (1995) 211 ITR 213, held that the gross dividend income should be regarded as having accrued or arisen or received by the assessee and it is only with reference to the gross income, the tax can be levied. Though the decision reported in A.F.W: Low's case (1995) 211 ITR 213 (Mad.), was dealing with a case of dividend, the principle laid down in that case would equally apply to the case pertaining to the interest income as well. Accordingly, we hold that the Tribunal was not correct in holding that the tax can be levied only on the net interest income. Accordingly, we answer the question of law referred to us in the negative and in favour of the Revenue. There will be no order as to costs. M.B.A./29/FC Order accordingly