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2016 (8) TMI 320 - HC - Income TaxFinance company within the meaning of Section 2(5B) of the Interest Tax Act - Held that:- The principle business of the assessee was in either of the two activities i.e., hire purchase loan business of investment business, the individual activity being less than 50%. The combined percentage of these two activities is 58.67% but by virtue of definition of clause (vi) of the residuary definitions of the Finance Act in section 2(5B), for a miscellaneous finance company, that is to say, a company which carries on exclusively or almost exclusively two or more classes of businesses referred to in the preceding sub-clauses. The percentage of the two activities which is 58.67%, cannot be said to be exclusively or almost exclusively. Therefore, it will not be a miscellaneous company within the meaning of clause (vi) of section 2(5B) of the Act. There is no other provision which is stated to be applicable to the assessee. In these circumstances, it is right in holding that the assessee was not a finance company and not liable to interest tax Act. Appellate tribunal is right in law and on facts in holding that the assessee company is not a finance company within the meaning of Section 2(5B) of the Interest Tax Act
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