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TMI Blog2006 (4) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... 5-4-2006 - Judge(s) : P. C. VERMA., B. C. KANDPAL. JUDGMENT The judgment of the court was delivered by P.C. Verma J.- This appeal under section 260A of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest on securities" received by the banking companies with effect from the assessment year 1996-97. The Assessment Officer concluded that for the assessment 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es is not chargeable to tax under the Interest-tax Act and dismissed the appeal of the Income-tax Department. Feeling aggrieved, the Department has preferred 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 inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited Western Bank Ltd (and connected appeals), reported in [2003] 259 ITR 312. In the said case the Division Bench of the Bombay High Court relying on the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent only to investments under the category 'permanent'. We do not wish to express our opinion on securities/debentures held under the caption 'current." In view of the above, we observe that the issue raised in the present appeal is squarely covered by the decision of the Division Bench of the Bombay High Court in the case of CIT v. United Western Bank Ltd. [2003] 259 ITR 312, and hold that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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