Interest on Share Capital Not Taxable: Bombay HC Rules in Favor of Appellant

The Bombay High Court held that interest earned on share capital contribution was not subject to tax as it did not constitute income. The court found no diversion of income by way of overriding title and ruled in favor of the Appellant due to the absence of the Respondent during the hearing.

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The Bombay High Court admitted an appeal regarding the taxability of interest earned on share capital contribution. The substantial questions of law included whether the interest income was exigible to tax and if there was a diversion of income by way of overriding title. The Respondent did not appear during the hearing.

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