TMI Blog2008 (8) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... RI, J. Mr. KK BISSA, for the appellant. Mr. RAMIT MEHTA, for the respondent. JUDGMENT These four appeals, arise out of three different orders of the Tribunal, and relate to the same assessee, but two different assessment years. The basic judgment of the Tribunal is under challenge in appeals Nos. 115/2006 and 120/2006, being dated 31.3.2005, relating to the assessment years 1996-1997 and 1997-1998. The question involved in all these four appeals is common, being as to whether the interest/penal interest, charged by the Bank, on delayed payment of installments, in recurring deposit account, by the depositor, can be subjected to levy of tax, under the provisions of Interest Tax Act, 1974? and therefore, all these appeals are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Mysore Vs. Commissioner of Income Tax, reported in the same volume at page 607. 4. On the other hand, learned counsel for the assessee, supported the impugned judgment, by relying on the basic language of the definition of interest, given in Sec. 2(7) of the Interest Tax Act, 1974. We have considered the submissions, and have gone through the judgments, relied upon by the learned counsel for the appellant. In our view, two judgments relied upon, are distinguishable on facts, in as much as, in Canara Bank's case, matter involved was, about the Industrial Development Bank of India's Bills Re-discounting Scheme. In that case, whole transaction was based upon pre-existing agreement between parties, including IDBI and the assessee Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present controversy. 6. Thus, in the very nature of things, for attracting the provisions of Act, the interest must be interest received, or being receivable, in certain circumstances, on the loans and advances, made in India. At this stage also, reference may be made to the objects and reasons, being to impose a special tax, on total amount of interest, received by the scheduled banks, on loans and advances, made in India. 7. Learned counsel for the appellant submits, that delayed payment of installments of R.D. Account, should be taken to be a "loan or advance" and, therefore, the interest earned thereon is exigible to tax. We are afraid, this interpretation cannot be accepted, in as much as, even taking the case on the highes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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