9911796707
TMI Blog1991 (12) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... c. i. f. Bombay plus US dollars 0.078 per lb nickel extra towards interest for 180 days credit from the date of the bill of lading (the interest rate calculating to approximately 7.5% p.a.). M/s. Billiton Metals and Ores, International B. V. accepted the order subject to the condition that duties, taxes and other levies including income-tax upon importation are borne by the petitioner. The petitioner, by its letter dated September 10, 1986, applied to respondent No. 1 under section 10(l 5)(iv)(c) of the Income-tax Act for according approval to the exemption of interest payable on debt incurred in a foreign country for supply of raw material. Respondent No. 1, vide order dated October 30, 1986, rejected the request on the ground that it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repayment. In fact, it is submitted by learned counsel for respondent No. 4 that no action under section 195 of the Income-tax Act has been taken against the petitioner and no deduction of tax has been insisted upon by the Department against the petitioner. Further, the foreign company, i.e., the supplier has also not been subjected to income-tax in India on the interest earned. Thus, it is submitted that the petitioner has no present grievance which needs to be redressed by this court. Section 10(15)(iv)(c) of the Income-tax Act, relevant for consideration, reads as under : " 10. Incomes not included in total income.-In computing the total income of a previous year of any person, any income falling within any of the following clauses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the loan or debt and the terms of repayment because no reasons whatsoever have been given in the said order. Respondent No. has also not indicated the guidelines on which they have relied. Whether the respondents will ultimately pass any order under section 195 of the Income-tax Act or not is not for consideration before us today. However, certainly if the petitioner is entitled to exemption he must get an order now and if he has to be denied that exemption then respondent No. must give reasons for the same. In the circumstances, we set aside the order dated October 30, 1986, and direct respondent No. 1 to reconsider the matter in the light of section 10(15)(iv)(c) of the Income-tax Act by giving a reasoned order and, if necessary, by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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