https://www.taxtmi.com/caselaws?id=424668 The High Court ruled in favor of the Appellant, a Scheduled Nationalised Bank, allowing the appeal against the Income Tax Appellate Tribunal's order disallowing deduction of interest paid to the Reserve Bank of India for the assessment year 1990-91. The Court held that the interest paid to the RBI was not penal but compensatory in nature, in line with a precedent set in a similar case involving another bank. The decision clarified that such interest is deductible in computing business income under the Income Tax Act for the relevant assessment year. en-us Wed, 15 Jun 2022 00:00:00 +0530 Wed, 06 Jul 2022 08:14:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424668 The High Court ruled in favor of the Appellant, a Scheduled Nationalised Bank, allowing the appeal against the Income Tax Appellate Tribunal's order disallowing deduction of interest paid to the Reserve Bank of India for the assessment year 1990-91. The Court held that the interest paid to the RBI was not penal but compensatory in nature, in line with a precedent set in a similar case involving another bank. The decision clarified that such interest is deductible in computing business income under the Income Tax Act for the relevant assessment year. Case-Laws Income Tax Wed, 15 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424668