2003 (4) TMI 35 - HC - Income Tax

Companies (Profits) Surtax Act, 1964 - interest on the sticky loans - proceedings were taken against the assessee on the return being filed declaring the chargeable profits under the Companies (Profits) Surtax Act, 1964, at Rs. 1,03,950 filed on March 18, 1989. It was in response to the notice issued under section 8(a) of the Companies (Profits) Surtax Act, 1964 Held that interest on the sticky loans cannot be included in the income-tax and accordingly, no surcharge can be included for the purpose of surtax. - There is no merit in the appeal. It is hereby dismissed.

Summary

The High Court of Allahabad dismissed the appeal against the Income-tax Appellate Tribunal's order related to the assessment year 1986-87. The Tribunal held that interest on sticky loans cannot be included for income-tax purposes, thus not for surtax purposes. The appeal was dismissed based on this decision.