No Requirement to deduct TDS on Interest payable on FDRs made in the name of the Registrar General of court.
In the Honorable Delhi High Court, UCO Bank Versus DCIT
Bank accepted a Fixed Deposit (FD) in the name of Register General of this Court and issued a Fixed Deposit Receipt (FDR).
ACIT issued a show cause notice to the petitioner bank for not deducting TDS on the interest accrued and to show cause why the petitioner bank be not treated as an assessee in default under Section 201(1)/201(1A) of the Act. The petitioner, by its reply, submitted that the said FD was in the name of Register General of this Court as a custodian and no TDS was deducted on the accrued interest because the actual beneficiary was not known as the matter was sub judice. It was also submitted that the TDS would be deducted on when payment is made to the beneficiary as may be decided by the Court. Continue reading
Even if the income is determined on estimated percentage basis under section 144 by AO on account of “books of account” were disbelieved, the benefit of claiming depreciation and interest cannot be denied if proof of purchase of machinery and other items and payment of interest is available with assessee.
The Commissioner of Income Tax Versus Y. Ramachandra Reddy – ANDHRA PRADESH HIGH COURT
The respondent is a civil contractor, and is an assessee under the Act. He submitted returns for the Assessment Year 1994-95 declaring loss of Rs.15,24,198/-. Thereafter, revised returns were filed showing enhanced figures of loss, being Rs.93,11,879/-. The Assessing Officer issued notice to the respondent. The books of account were not believed and obviously, by taking recourse to Section 144 of the Act, the Assessing Officer passed an order to the effect that the total receipts are to the tune of Rs.9,52,52,636/- and net profit at 9%, works out to Rs.85,72,737/-. A sum of Rs.1,49,294/- was added towards miscellaneous receipts. AO took the view that since the profit is determined on estimation basis, deduction of depreciation or interest would not be allowed. Continue reading