Banks' Interest Income from Govt Securities Not Taxable under Interest-tax Act

The SC held that interest earned by assessee-banks on dated Government securities is not assessable under the Interest-tax Act, 1974, affirming the Bombay HC decisions and dismissing the Department's appeals. No costs were awarded.

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The Supreme Court of India ruled that interest earned by assessee-banks on dated Government securities is not liable to be assessed under the Interest-tax Act, 1974. The court agreed with the decisions of the Bombay High Court and dismissed the civil appeals filed by the Department. No costs were awarded.

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