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2016 (6) TMI 1026 - HC - Income TaxLiability of interest - principle business of the assessee - whether the Appellant is a credit institution under the provisions of Interest Tax Act and further liable to pay tax on chargeable interest earned by it ? - Held that:- Interest income in the three years is ₹ 14,97,441/-, Rs, 11,15,533 and ₹ 4,46,972/- whereas the service charges are only ₹ 5,40,132/-, ₹ 3,95,405/- and ₹ 2,95,098/-. From the balance sheet it is clear that the assessee had given ₹ 89,95,449/- towards unsecured loan. Therefore, in view of clause (v) of Section 2 (5B) of the Interest Act, the main activity of the assessee is to provide loan and main source of its income is interest. In view of all these, the questions of law framed for our consideration are required to be answered against the assessee and in favour of the department.
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