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Bajaj Auto Holdings Ltd. Vs. the D.C.i.T., Special Range 3

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (2006)281ITR154(Mum.)

..... for the reasons given above, it is held that the interest on inter-corporate deposits represent interest on loans and advances and accordingly the provisions of section 2(7) of the interest tax act, 1974 applied to such interest. ..... "on the facts and circumstances of the case and in law, the appellant submits that section 26c of the interest tax act gives power to the credit institutions to vary the rate of interest so as to include the interest tax and the interest tax has been levied on the gross interest received and accordingly as per the principles of diversion of income by over-riding title, the interest tax liability ought to have been computed at 3/103 of the amount of interest received and not 3/100 of the interest received." 11. ..... counsel appearing on behalf of the assessee submitted that the definition of 'interest' has been provided under section 2(7) of the interest tax act, which is reproduced below: " 'interest' means interest on loans and advances made in india and includes - a) commitment charges on unutilized portion of any credit sanctioned for being availed of in india; and b) discount on promissory notes and bills of exchange drawn or made in india, but does ..... 14,47,290/- the relevant facts are that in the assessment order passed by the ao under section 8(2) of the interest tax act, the aforesaid interest of rs. ..... he directed the ao to verify and modify the assessment accordingly.5. .....

Mashreq Bank Psc Vs. Dy. Director of Income Tax

Court : Income Tax Appellate Tribunal ITAT Mumbai

..... 1,25,360 levied under section 12b of the interest-tax act, 1974, vide order under section 8(2) dated 19-3-1999 for interest-tax assessment year 1996-97. " 38. ..... the learned commissioner (appeals) has rejected the deduction only on the ground that section 18 of the interest-tax act, 1974, provides for deduction in respect of only 'interest-tax payable', and since interest levy for deferment of advance interest-tax payable is not a part of 'interest-tax payable', deduction in respect of the same cannot be allowed. ..... section 18 of the interest-tax act cannot be viewed as a disabling clause; all it provides is that " notwithstanding anything contained in the income tax act", deduction in respect of interest-tax payable is to be allowed in computation of income of the credit institution assessable in respect of the same. ..... this is an appeal filed by the assessee and is directed against the order dated 10-1-2001 passed by the commissioner (appeals), in the matter of assessment under section 143 (3) of the income tax act, 1961, for the assessment year 1996-97.2. ..... ms may be one of the other alternate reasons for not invoking the provisions of section 40(a)(i) of the income tax act for disaflovving the payment of interest in computing the income of the assessee through the pe. ..... quite to the contrary, section 18 enables the deduction in respect of interest-tax even if any restrictions are imposed by the income tax act, in respect of deductions in respect of the same. .....

Lic of India Vs. Joint Commissioner of Income Tax

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (2002)82ITD749(Mum.)

..... , assessee filed its returns of chargeable interest showing chargeable interest as follows : it was claimed by the assessee that it had not taken into account interest on government of india securities (government securities for short), debentures and bonds for the purpose of chargeable interest under the act as the same could not be classified as interest on loans and advances under section 2(7) of the interest-tax act, 1974 (as amended by the finance act, 1994).4. ..... interest on such debentures must be treated as interest on investments which fall outside the purview of the interest-tax act, 1974, and not as interest on loans and advances taxable under the interest-tax act, 1974 ..... reference is then made to the definition of the term "interest" given in section 2(28a) of the it act, 1961 (it act for short) and to the definition of the expression "interest on securities" given in section 2(28b) of the it act r/w section 2(10) of the interest-tax act and it is held that government security and other securities are special categories of loans and advances as they are secured ..... perhaps discount on promissory notes and bills of exchange may have escaped interest-tax, though, in essence it is interest earned on making finance available. ..... rest of the assessment years under consideration. ..... above assessments were ..... assessing officer (ao for short) in the assessment ..... disputes permitting the assessee to pursue the appeals before the tribunal is placed on record for the assessment years in question. .....

Life Insurance Corporation of Vs. Joint Commissioner of Interest

Court : Income Tax Appellate Tribunal ITAT Mumbai

..... for short), debentures and bonds for the purpose of chargeable interest under the act as the same could not be classified as interest on loans and advances under section 2(7) of the interest-tax act, 1974 (as amended by the finance act, 1994).4. ..... interest on such debentures must be treated as interest on investments, which fall outside the purview of the interest-tax act, 1974, and not as interest on loans and advances taxable under the interest-tax act, 1974 ..... reference is then made to the definition of the term "interest" given in section 2(28a) of the it act, 1961, and to the definition of the expression "interest on securities" given in section 2(28b) of the it act r/w section 2(10) of the interest-tax act and it is held that government security and other securities are special categories of loans and advances as they are secured by government and local authorities ..... of its nomenclature, perhaps discount on promissory notes and bills of exchange may have escaped interest-tax, though, in essence it is interest earned on making finance available. ..... all these five appeals by the assesses arise out of five separate orders of the learned cit(a), ..... -93 was followed in the rest of the assessment years under consideration. ..... the above assessments were challenged before the cit ..... assessing officer (ao for short) in the assessment for ..... of the committee on disputes permitting the assessee to pursue the appeals before the tribunal is placed on record for the assessment years in question. .....

Deputy Commissioner of Income Tax Vs. Syncome Formulations (i) Ltd.

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (2007)106ITD193(Mum.)

..... it was considered in the context of interpretation of interest-tax act, 1991. ..... of high court, the supreme court held that all that section 115j sub-section (2) provides is to preserve the right to carry forward the balance of the unabsorbed deductions from the relevant previous year to the next assessment year; but does not create any right nor does it serve to allow all the deductions taken into consideration for determining whether the total income should be quantified under section 115j sub-section (1) to be carried forward under ..... "; when compared and read together do not give any intention or expound any purpose that section 115ja is different from section 115j and section 115jb is different from section 115ja in the character and purpose of deduction under section 80hhc in a case of mat assessment. ..... the speeches of the finance minister, explanations, the notes on clauses all consistently declared that in spite of the three different sections 115j, 115ja and 115jb existed for different assessment years, the deduction provided under section 80hhc even in a case of mat assessment means full deduction and full deduction will be available only if the adjusted book profit is considered for the computation of section 80hhc.48. ..... which would have been adjusted and set off, had the assessee been assessed to tax in the regular way in accordance with the provisions of sections 28 to 43 and not by way of application of the provisions of section 115j. .....

ito Vs. Kamu Metals (P) Ltd.

Court : Income Tax Appellate Tribunal ITAT Mumbai

..... section 2(5b)(ii) of the interest tax act, 1974 and decision of the division bench of the tribunal in the case of ..... assessing officer held that these activities could not be categorised as business activities and therefore, these expenses were not allowable under section 37 of the income tax act ..... either in the present or in the future under that head is pre-supposed.in this background, now we have to look the scheme of computation of income under the head 'profits and gains of business or profession'.section 28 applies only in respect of business or profession, profits or gains of which are assessable under that head under the income-tax act ..... business of holding of investments, whether in that situation, the assessee can get deduction under the head 'profits and gains of business or profession' where the income arising to the assessee out of these activities is assessable either under the head 'capital gain or income from other sources'. before examining this legal issue we consider it pertinent to state that in the year under consideration as well as in the subsequent 3-4 years, ..... the assessee also contended that the fact income arising from investment was not assessed under the head 'profits and gains of business or profession' was not relevant as the income in essence was of the nature of business income.the assessee also referred to the scheme of act regarding taxation of income and submitted that classification of income under various heads was only for the purpose of computing .....

The Jt. C.i.T., Special Range-13 Vs. Tata Finance Ltd.

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (2004)91ITD9(Mum.)

..... where banks show debentures under the head "investments', the debentures are in the nature of securities interest on such debentures must be treated as interest on investments, which fall outside the purview of the interest tax act, 1974, and not as interest on loans and advances taxable under the interest tax act, 1974.under section 2(7)(b)(i) any amount chargeable to income-tax, under the income-tax act, under the head "interest on securities" would not be included (sic) interest under the interest-tax act.7. ..... a writ petition, the hon'ble bombay high court held that interest tax was not leviable on the interest received from the rbi on the dated government securities and, secondly, the issue raised concerned lack of authority jurisdiction on the part of the assessing officer under the interest-tax act to levy tax on such interest. ..... profits on sale of government dated securities as well as interest earned on the government dated securities were shown as business income and assessed under the income-tax act. ..... jt.commissioner of interest-tax "the assessee-corporation, in its returns for the assessment years under consideration, had shown chargeable interest which did not include interest on government of india securities, debentures and ..... the assessee contended before the assessing officer that section 2(7) of the interest tax act defines 'interest' to mean interest on loans and advances made in india and that no mention is made of interest on securities in this inclusive .....

inspecting Assistant Vs. Tata Chemicals Ltd. Tata

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (1999)68ITD205(Mum.)

..... act, or with a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); (viii) to such income credited or paid by the central government under any provision of this act or the indian it act, 1922 (11 of 1922), or the ed act, 1953 (34 of 1953), or the wt act, 1957 (27 of 1957) or the gt act, 1958 (18 of 1958), or the super profit tax act, 1963 (14 of 1963), or the companies (profits) surtax act, 1964 (7 of 1964), or the interest-tax act, 1974 (45 of 1974 ..... lead to a manifestly absurd result, because in a given case like the present one, where the appellate authority (tribunal) has found (a) the ito's order to be clearly erroneous as being prejudicial to the interest of the revenue; and (b) the cit's order unsustainable as being in violation of principles of natural justice, how should the appellate authority exercise its appellate powers obviously, it could not withhold its hands and refuse ..... support from the principles laid down by the hon'ble supreme court regarding interpretation of law, which appears to have escaped the attention of some of the benches of the tribunal, whose orders were cited before us by the learned counsel ..... " a bare reading of these sections makes it clear that irrespective of the fact that a regular assessment in respect of the payee is to be made for a later assessment year, the tax shall be deducted at source in accordance with the provisions of chapter xvii .....

Deputy Commissioner of Vs. Oscar Investments Ltd.

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (2006)98ITD339(Mum.)

..... part of business, the pattern or trend of assets/income composition over a period of years must be considered and asset/income composition of one year alone cannot be a conclusive proof.12.4 the observation of assessing officer that the lender company has not paid interest tax under the provisions of interest-tax act, 1974 is also a relevant point for consideration because any person carrying business activity in the ordinary course should have a reasonable knowledge of statutory obligations which one has to perform. ..... therefore, we are further of the view that interest being mandatory and assessing officer having no power to waive it overtly or by implication, the assessing officer can charge these interests by invoking the power under section 154 of the act if not originally charged in the assessment order. ..... 3,39,37,000, being amount of loan, raised by the assessee-company from olpl treating such loan as deemed dividend under the provisions of section 2(22)(e) of the income-tax act, 1961 (for short 'act') because one common shareholder, namely, m/s. ..... cit(a) confirmed the addition by holding that after treating the loan as deemed dividend one need not come to the last day of the accounting period because section 2(22)(e) requires that whenever loan is advanced to a shareholder or to a concern, accumulated profits up to the date of such advance must be ascertained and since on the date of loan the loss etc. .....

Union Bank of India Vs. Additional Commissioner of

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (2007)108TTJ(Mum.)720

..... issue requiring our adjudication in these appeals is whether or not the interest component of a finance leasing amount received by the assessee bank is liable to be included in chargeable interest' within meaning of section 2(7) of the interest-tax act, 1974 (the act, in short). ..... thus clear that merely because a receipt in the nature of interest, it is not sufficient that it can be brought to tax under the interest-tax act; it must also be interest on 'loans and advances'. ..... reasons set out above, we direct the ao to exclude lease rental component attributable to interest from 'chargeable interest' brought to tax under the interest-tax act. ..... considered view, therefore, while a part of the finance lease payment is inherently in the nature of interest inasmuch as it is compensation for time value of money, it cannot be termed as 'interest on loans and advances' which is condition precedent for its inclusion in chargeable interest under the interest-tax act. ..... held that an interest income (interest on inter-corporate deposit in that case) clearly falls within meaning of 'interest on loans and advances', it would not be taxable under the interest-tax act. ..... impugned assessment order, the ao has held that since this receipt is in the nature of interest, the same is liable to be included in the definition of chargeable interest under section 2(7) of the interest-tax act. ..... assessment years involved are 1996-97 to 1998-99 and the impugned assessments are framed under section 8(3) of the act .....