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2016 (8) TMI 113 - HC - Income TaxInterest on inter corporate deposit - whether was not chargeable to tax under the Interest Tax Act? - whether inter corporate deposit can neither be treated as loan nor an advance? - Held that:- Questions raised in these appeals are already settled by a judgment of the Delhi High Court rendered in the case of Commissioner of Income-tax v. Visisth Chay Vyapar Ltd., [2011] (Delhi) (2011 (8) TMI 783 - Delhi High Court ] wherein, it has been held that the expression advance occurring in section 2(7) along with the expression loan should take its colour from loan and cannot be given wider interpretation to include deposit as well, otherwise, money deposits given for investments, etc., would also qualify as advances and interest thereon would become exigible to the Interesttax Act. Such a situation was never contemplated by the legislature. Hence, inter-corporate deposit is not in the nature of loan or advance within the meaning of section 2(7) and therefore, not chargeable to the interest-tax under section 5 - Decided in favour of the assessee
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