Taxability of Interest Income Depends on the Investor, Not the Name on the Deposit: ITAT

The ITAT ruled that the taxability of interest income depends on the investor’s status and not the name on the deposit. The case involved a dispute over the tax treatment of interest income, with the tax authorities arguing that the name on the deposit should determine the taxability. However, the ITAT ruled that it is the actual investor, rather than the name under which the deposit is held, who is liable for taxes on interest income. This ruling clarifies the approach to taxability of interest income and ensures that the correct taxpayer is held liable for taxes, regardless of the deposit's formal designation.