Interest payable on default in payment in case of a discounted bill of exchange

Dealing with the question that the interest received by banks after bills of exchange have been discounted by them and a party defaults and hence has to pay compensation by way of interest as payment is made after the date stipulated in the bill of exchange is liable to tax under the Interest Tax Act, 1974, the bench of Dr. A.K. Sikri and R.F. Nariman, JJ held that the Interest Tax Act, unlike the Income Tax Act, 1961 has focused only on a very narrow taxable event which does not include interest payable on default in payment of amounts due under a discounted bill of exchange.

Article referred: http://blog.scconline.com/post/2015/11/24/interest-payable-on-default-in-payment-in-case-of-a-discounted-bill-of-exchange-not-taxable-under-interest-tax-act-1974/

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Partition proceedings are vitiated even if single co-sharer is not made party or is not served in accordance with law

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