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The United Commercial Bank ... vs The Commissioner Of Income-Tax,West ... on 23 May, 1957

derived from any Security of the central Government or a State Government , it is therefore , Necessarily referable to section 14(b) so far as the head of income is concerned, and section 18 so far as the type of securities , interest from which has to be computed in arriving at the income of the assessee. It does not make any distinction between a non-resident company or any other individual assessee. That being the position in allowing adjustment in computing the chargeable profits of a previous year of an assessee from the total income computed for the year under the Income Tax Act what would be deducted so far as interest on security derived from the Central Government or state Government is concerned in accordance with Clause VI of Rule I of First Schedule has no application . Clause X Provides for an additional deduction to be made in case of a non-resident company if the said company has derived any income by way of interest which it received from government or local authority or any Indian concern which is not covered by Clause VI. In the case of United Commercial Bank Ltd. Vs. Commissioner of Income-Tax, West Bengal 32 Income Tax Reports 1957 page 688, the question for consideration before this court was whether income from interest on security Would fall under section 8 or under section 10 of the Income Tax Act, 1922? This court construed sections 8, 10 and 24(2)of versa, and therefore no question of the applicability of the principle generalia speciialibus non derogant arises. This finds support from the decided cases which have been discussed above. Thus both the precedent and on a proper construction , the source of income "Interest on Securities" would fall under section 8 and not under section 10 as it is specifically made chargeable under the distinct head "interest on securities"
Supreme Court of India Cites 28 - Cited by 433 - J L Kapur - Full Document
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