Supreme Court of India
South Indian Bank Ltd. v. Commissioner of Income Tax
INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.
What the Court ordered
We are of the considered opinion that the High Courts h ave correctly interpreted the scope of Section 14A of the Act in their decisions favouring the assessees. 20.Applying the same logic, the disallowance would be lega lly impermissible for the investment made by the assessees in bonds/shares using interest free funds, under Section 14A of the Act.
Judgment, page 10
From the headnote
Income Tax Act, 1961 – s.14A – Interpretation of – Assessees are scheduled banks and in course of their banking busin ess, they also engage in the business of investments in bonds, securi ties and shares which earn the assessees, interests from such securi ties and bonds as also dividend income on investments in sha res of companies and from units of UTI etc. which are tax free – Whether proportionate disallowance of interest paid by the bank s is called for u/s.14A for investments made in tax free bonds/ securi ties which yield tax free dividend and interest to assessee Banks when asse ssee
Authorities it was built on
- 2006 S.A. Builders Ltd. v. Commissioner of Income Tax (appeals) Chandigarh and Anr.
- 2017 Godrej & Boyce Manufacturing Company Limited v. Dy. Commissioner of Income-tax & Anr.
- 2000 Rajasthan State Warehocsing Corporation v. Commissioner of Income Tax
- 2018 Maxopp Investment Ltd. v. Commissioner of Income Tax, New Delhi
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