2006 (4) TMI 77

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.... the Income-tax Act, 1961 has been preferred against the order dated November 25, 2004, passed by the Income-tax Appellate Tribunal, Lucknow, in Income-tax Appeal No. 4/Alld of 1999 for the assessment year 1995-96, by which the Tribunal has dismissed the appeal filed by the Department. The brief facts of the case giving rise to this appeal are that in the computation of income the appellant (re....

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.... year 1995-96, "interest on securities" was clearly taxable and, therefore, interest on G.P. notes amounting to Rs. 5,45,31,276 was included in the interest chargeable in the hands of the respondent. Against the said order the respondent filed an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) allowed the appeal of the respondent-Nainital Bank ho....

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....this appeal. We have heard learned counsel for the parties. The following question of law arises for the assessment year 1995-96: "Whether the Tribunal was correct in law in holding that 'interest on securities' is not chargeable to interest-tax under the Interest-tax Act, 1974, for the assessment year 1995-96?" Learned counsel for the appellant contended that because the Legislature inte....

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.... case of the apex court in CIT v. Madurai Mills Co. Ltd. [1973] 89 ITR 45 (SC), held as under: "We are confining this judgment to the case of the assessee-banks governed by the Banking Regulation Act, 1949. Under the Companies Act also the form of balance-sheet is prescribed. In that form, on the assets side, we have a column under the caption 'current assets'. We do not have such a column of '....