Interest

Indian Income Tax Act, 1961, S. 234A.

Indian Income Tax Act, 1961, Ss:2(7), (28A), 194A, 201, 240, 244(lA), (3) & 244A.

Indian Income Tax Act, 1961, Ss.139(8), 147, 215 & 256.

Indian Income Tax Act, 1961, S.273A.

Indian Income Tax Act, 1961, Ss. 139 & 217.

Finding of Tribunal that transaction by Bank of borrowing money from Agricultural Development and Refinance Corporation and Industrial Development Bank of India and lending it to its constituents constituted an integrated transaction

Finding of fact

Tribunal justified in holding that only net interest was taxable

No question of law arose from its order

Indian Income Tax Act, 1961, S.256

Indian Interest Tax Act, 1974.

Indian Income Tax Act, 1961.

Interest cannot be awarded on a claim of an amount in absence of mutual agreement, mercantile usage, statutory provision and, except in some cases, on equitable grounds.

Interest Person who enjoys the possession of property is not entitled to the interest which accrues on the prior thereof??Party out of possession of property is however, entitled to such interest.

Held, question already standing settled by a pronouncement of Supreme Court in P L D 1976 S C 531 does not require to be considered.

Income-tax-Refund-Interest-Refund consequent to Supreme Court decision-Paid within six months of date of order entitling refund-Interest from date of payment to date of refund-Whether payable-Assessment under old Act-Refund under new Act

Provision applicable-Income-tax Act, 1961, S. 240 & 297(2)(c), (2)(i)-Indian Income-tax Act, 1922, S. 66(7).

Award-Interest-Arbitrator, in absence of express or implied contract or usage of trade awarding interest tit rate of 6% on damages-Award modified by striking off its portion relating to payment of interest on damages-Arbitration Act (X of 1940), S. 15.

Interest-Money due to an individual withheld by Government on a restraint order issued by Custodian of Evacuee Property-On payment subsequently released Government could not he held liable for interest on money which Government was prevented by Custodian's order from paying.

Ss. 34 & 35(3) read with Interests Act (XXXII of 1939), S. 34-Money suit-interest Plaintiff entitled to interest from date of demand notice given to, defendant prior to filing of suit and thereafter for period the suit remains pending.

Interest-Reference to High Court for one year Answer in favour of assessee-Necessary relief for other years-Refund of tax overpaid- Whether assessee entitled to interest on refund in respect of other years-Excess profits tax assessmentWhether different-Indian Income-tax Act, 1922, S. 66(7)Excess Profits Tax Act, 1940.

Amalgamation of companies-New company taking over assets and allotting shares for part of price of assets-Interest on balance of price-Whether interest on borrowed capital-Whether business expenditure-Whether revenue deduction-Income-tax Act, 1922, S. 10(1), (2)(iii), (xv).

Money suit for recovery of amount loaned on two alternative securities; viz, equitable mortgage of deposit of title deeds of property and a pro-note-Mortgage deed silent as to rate of interest but pro-note mentioning interest at 10 per cent.-Action based principally on equitable mortgage deed-High Court, in circumstances, held, justified in exercising its ov.n discretion and granting interest at 8 per cent.-Special Leave to Appeal refused by Supreme Court.

Interest Interest-Interest for period prior to institution of suit-Basis of payment: agreement, usage and law.

S. 34-Interest-For period before suit; for period of suit; and for period from passing of decree till payment-Interest, for first two periods not allowed where debtor's liability was only "vicarious" and he had not derived any "actual" benefit from outlay-(Debtor: Pakistan; creditor a contractor who had provided consumer-articles and constructed buildings for a camp for refugees from Burma).

Interest -Refund of advances made towards purchase of property - Recoverable on breach of agreement of sale-Interest claimable from date when refund was demanded - Interest Act (XXX11 of 183.9), S. 1.

S. 10 (2) (iii)-Interest Unregistered partnership-Partner borrowing money for purposes of business of unregistered firm-Interest paid by partner on money borrrowed-Whether allowable deduction in partner's assessment.

Partner-Capital borrowed for partnership-Interest paid by partner-Whether allowable as deduction from his share of profits.