"Taxation of interest Income earned"

[brett_lee38]

My client has deposited certain amount of tax after being assessed under section 143(3). He filed appeal before the CIT(A) who decided the appeal in favour of my client. And he received a refund along with interest. Now the department is in appeal before the ITAT . Please tell me whether he should offered the amount of interest for taxation or wait for the order of ITAT and then if department accept order of the ITAT, offered this income for taxation

[pawansingla]

You have to offer interest as income and do not have to wait for the order of the Tribunal.Kindly read TAMIL NADU INDUSTRIAL INVESTMENT CORP LTD V/S DCIT(2004) 270 ITR 556(Madras) and also the decision of Apex Court in case of POLYFEX India .

[PANKAJ JAIN]

Can you please give the citation of Apex court decision on this issue.


citation of CIT Vs Tamil Nadu Invst. corporation is 240 ITR 573 (Mad).

[pawansingla]

POLYFEX PVT LTD V/S CIT .257 ITR 343

[brett_lee38]

Thanku Mr Pawan Singla for giving the citation of Tamil Nadu case reported in 270 ITR 566 (Mad). This decision has crystalised my opinion

thanks