44,720/ was entitled to rebate for income tax under the numberification issued by the Central Government in exercise of its powers under s. 60 A of the Indian Income tax Act, 1922.
Appeal by special leave from the judgment and order dated February 19, 1963 of the Kerala High Court in Income tax Referred Case No.
44,720/ earned by the assessee from securities issued by the former Native States, etc.
33,444/ as the sum representing two items, viz.,
A Division Bench of the High Court expressed the opinion that the entire interest of Rs.
44,720/ received as interest from the said securities.
But, the Income tax Officer, while companypleting the assessment, arrived at the figure of Rs.
7,276/ as rebate for income tax.
i reasonable sum expended by the assessee in realizing the said interest and ii the interest payable on the money borrowed for the purpose of investment.
On a further appeal, the Income tax Appellate Tribunal, Madras Bench, held that the Bank was entitled to a, rebate on the gross amount of interest amounting to Rs.
is entitled to rebate of income tax.
Ganapathy Iyer and B.R.G.K. Achar and R. N. Sachthey, for the appellant.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
44,720/ .
23 of 1962.
At the instance of the Department, the Tribunal referred the following question to the High Court of Kerala for its decision Whether, on the facts and circumstances of the case, the Tribunal was right in holding that Explanation to section 8 is number applicable in this case and that the entire interest of Rs.
After deducting the said sum from the interest receivable from the said securities, he granted only a sum of Rs.
842 of 1964.
44,720/ towards interest in respect of taxfree Cochin and Travancore Securities.
V. Viswanatha Sastri and R. Gopalakrishnan, for the respondent.
During the accounting year the Bank received a sum of Rs.
On appeal, the Appellate Assistant Commissioner upheld the view of the Income tax Officer.
During the companyrse of the assessment of its income to tax, it claimed that rebate should be allowed on the entire sum of Rs.
This appeal is companycerned with the assessment year 1956 57, companyresponding previous year being the calendar year 1955.
The Judgment of the Court was delivered by Subba Rao, J. The respondent, the South India Bank Limited, Trichur, is a banking companypany.
Hence the appeal.
