https://www.taxtmi.com/caselaws?id=16831 Treasury bills issued as statutory Government securities were treated as giving rise to interest rather than business profit. The court construed "interest" broadly under the Income-tax Act and noted that, because treasury bills are issued at a discount and redeemed at face value, the difference represents the return on funds invested until maturity. On that basis, the discount was characterised as interest on securities and not as a trading receipt, so it was taxable under the head of interest on securities rather than as business income. en-us Wed, 10 Jun 1998 00:00:00 +0530 Sat, 12 Sep 2009 13:58:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16831 Treasury bills issued as statutory Government securities were treated as giving rise to interest rather than business profit. The court construed "interest" broadly under the Income-tax Act and noted that, because treasury bills are issued at a discount and redeemed at face value, the difference represents the return on funds invested until maturity. On that basis, the discount was characterised as interest on securities and not as a trading receipt, so it was taxable under the head of interest on securities rather than as business income. Case-Laws Income Tax Wed, 10 Jun 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16831