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2011 (5) TMI 165 - HC - Income TaxDoctrine of estoppel - In the field of taxation, there is no estoppel against a person for his erroneous submission of return under a wrong impression that he was an assessee under the Act - Thus, there is no estoppel against a person for filing a return under the Act if he is otherwise really found to be not subject to the tax and at the same time, hold that the Tribunal has not dismissed the claim of the appellant solely on the ground of estoppel. Credit institution - the appellant is a credit institution which would appear from its own statement of account and thus, comes within the purview of the Interest tax Act and such finding can be arrived at without taking into consideration the fact that the Reserve Bank of India has recognised it as a non-banking financial institution. brokerage and the syndication fees - As provided in Section 2(7) of the Act quoted above, brokerage charge and syndication fees taken from the clients by the appellant for making arrangement for providing finance through other financiers cannot come within the purview of interest on loans and advances made in India including (a) commitment charges on unutilised portion of any credit sanctioned for being availed of in India; or (b) discount on promissory notes and bills of exchange drawn or made in India - direct the Assessing Officer to deduct the amount of brokerage and the syndication fees received by the appellant from the taxable income of the Appellant under the present Act. Chargeable to tax - Although the income of the assessee by way of syndication fees and brokerages, are in the nature of professional income, not forming any part of chargeable interest for the purpose of taxation under the Interest Tax Act and those should be excluded, yet, in the light of the provisions of Section 2(5B) (iv) of the Act, the appellant is chargeable to tax under the Act for the other interest received by it including the bill discounting charges.
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