DEPUTY COMMISSIONER OF INCOME TAX, CHENNAI vs T. JAYACHANDRAN

The Supreme Court addressed the appeal against the Madras High Court's decision which absolved the respondent from additional tax liability imposed under Section 143(3) of the Income Tax Act, 1961. The Court held that the respondent acted as a broker for the Indian Bank and that the additional interest paid to PSUs was not taxable as income of the respondent. The judgment emphasized the distinction between the roles of a broker and an independent dealer, ultimately upholding the High Court's ruling.