SC REFERS ISSUE OF INTEREST TAX ON INVESTMENTS TO TRIBUNAL

The Supreme Court has referred a bunch of petitions, raising a similar question whether interest earned by banking companies on investments, which are in the form of securities, bonds and debentures, is liable to be assessed for tax, to a sectoral tribunal. Both the Income Tax
Appellate Tribunal and the Bombay High Court had held that such banking institutions are not liable to pay interest tax under the Interest Tax Act, 1974.