COMMISSIONER OF INCOME-TAX, KERALA vs SOUTH INDIAN BANK LTD. TRICHUR

The Supreme Court held that under the Indian Income-tax Act, 1922, specifically Section 8, the notification issued under Section 60-A must be interpreted independently regarding the rebate on interest from tax-free securities. The Court ruled that the rebate should be calculated on the gross amount of interest received, without deducting expenses incurred in earning that interest. Consequently, the Court upheld the Tribunal's decision that no income tax was payable on the interest received by the assessee from the securities in question.