TMI Blog2005 (10) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... urities is not subject to interest-tax?" - both questions are answered in the affirmative, against the Revenue and in favour of the assessee - - - - - Dated:- 27-10-2005 - Judge(s) : P. D. DINAKARAN., N. KANNADASAN. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J.- Against the order of the Appellate Tribunal in I.T.A. No.98/Mds/1999, dated March 18, 2005, the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es would be subject to interest-tax. On appeal by the assessee, the Commissioner of Income-tax (Appeals) decided the issues in favour of the assessee, which was confirmed by the Appellate Tribunal on appeal filed by the Revenue. Hence, the Revenue has come forward with this appeal. It is fairly submitted by learned counsel for the Revenue that the issue raised in the first question is covered ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the agreement. We, therefore, hold that the finding recorded by the Appellate Tribunal is a finding of fact and there is nothing to interfere with the said finding." In the instant case, the Appellate Tribunal decided the issue in favour of the assessee, following its earlier order in Harita Finance Ltd.'s case [2006] 283 ITR 370, the appeal filed against which was decided in favour of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one has to read section 2(7) in the context of the scheme of the Act. If so read, interest received from the Reserve Bank of India on dated Government securities will not fall within the meaning of the expression 'interest on loans and advances' under section 2(7). The deletion of the exclusionary clause by the Finance (No. 2) Act of 1991 would have no effect on section 2(7) as the exclusionary cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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