1968 (8) TMI 20 - SC - Income Tax

Securities issued by Indian States of Tranvancore and Cochin are securities of a State Govt. within the meaning of the third proviso to section 8 of IT Act, 1922. Therefore the interest on securities issued by the erstwhile Indian States of Travancore and Cochin was assessable u/s 8 of the Act not u/s 12 of the Act - Assessee s appeal is allowed

Summary

The Supreme Court allowed the appeal regarding the assessment of interest on securities issued by the Indian States of Travancore and Cochin under section 8 of the Income-tax Act, 1922. The High Court's decision was overturned, and the appellant-bank's contention was upheld based on the definition of State Government securities. The Commissioner was ordered to pay the costs of the appellant-bank. (Case citation: 1968 (8) TMI 20 - Supreme Court)