2000 (12) TMI 6 - SC - Income Tax

Banking Company - Interest On Securities - Rectification Of Mistakes - Whether the Tribunal was right in law in canceling the rectification order of the Assessing Officer - Having regard to the difference of opinion among the learned judges of the High Court on the principal question it is clear that there was a debatable question and no error on the face of the record which could be corrected by invocation of the provisions of section 154

Summary

The Supreme Court dismissed the Revenue's appeal against the decision of the High Court of Kerala regarding the cancellation of rectification order by the Assessing Officer for a scheduled bank's deduction of interest paid for broken periods. The Tribunal found a debatable issue and held in favor of the assessee, leading to the High Court's decision in favor of the assessee. The Supreme Court did not express any opinion on the principal issue and dismissed the appeals with no order as to costs.