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The Tax Publishers ITO v. R. Venkatachalam [ITA No. 3171/Mds/1992, dt. 22-4-2016] : 2016 TaxPub(DT) 2235 (Mad) Upfront receipt by discounting of IDBI bonds, income whether spread over *Facts:* Assessee received money upfront by discounting the IDBI bonds for 36 months and received Rs. 3.62 lakhs and offered proprtionate interest for 11 months in the tax return. The assessing officer held the whole income to be taxable. Commissioner (Appeals) agreed with the assessee that it has to be spread over to the 36 month period. On further appeal: Held in favour of the assessee that the income has to be spread over for 36 months.

The Tax Publishers

ITO v. R. Venkatachalam [ITA No. 3171/Mds/1992, dt. 22-4-2016] : 2016 TaxPub(DT) 2235 (Mad)

Upfront receipt by discounting of IDBI bonds, income whether spread over

Facts:

Assessee received money upfront by discounting the IDBI bonds for 36 months and received Rs. 3.62 lakhs and offered proprtionate interest for 11 months in the tax return. The assessing officer held the whole income to be taxable. Commissioner (Appeals) agreed with the assessee that it has to be spread over to the 36 month period. On further appeal:

Held in favour of the assessee that the income has to be spread over for 36 months.