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2011 (8) TMI 783 - HC - Income TaxInterest Tax under section 5 of the Interest-tax Act - Inter corporate Deposits vs Loan & Advance - Interest Credited in P&L - TDS deducted - Held That:- loan payable on receipt while deposits have fixed term - loan at request of borrower while deposit at instance of depositor - limitation from date of loan for deposit from the date of repayment - In the instance case the facts revealed that amount were received as "Deposits" and not "Loans" thus interest earned were not chargeable to interest tax under Sec 5. - Distinctions brought in case of Baidya Nath Plastic Industries (P) Ltd. (1997 - TMI - 17269 - DELHI High Court) - Once we find that monies given by the assessee to SWC did not fulfil the aforesaid criteria thereby bringing it within the expression "loan", the question of applicability of section 2(7) of the Interest-tax Act would not arise.
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