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2018 (8) TMI 1553 - HC - Income TaxReassessment of proceedings - justification given for the disallowance of loan restructuring fee and alike charges paid by the assessee - Held that:- The assessee’s appeal succeeded before the Income Tax Appellate Tribunal which, on the issue of subsequent assessment proceedings for the Assessment Year 2003-04, accepted the assessee’s contentions with respect to the correct interpretation under Section 2(28A) of the Act. It was held on the merits that the broad nature of the definition of “interest” under Section 2(28A) of the Act includes not only interest but also the other amounts. The Revenue’s contention that the restructuring fee paid by the assessee under these circumstances, in the opinion of this Court, is not interest, is unpersuasive. Firstly, Section 2(28A) of the Act is using wide terms and comprehensively not only ‘interest’ per se and also the other amounts, such as deposits, service fee or “other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised”. This broad definition led the Court to the interpretation in the case of Gujarat Guardian Ltd. (2009 (1) TMI 13 - HIGH COURT DELHI) that the pre-payment premium or charges were “interest” within the meaning of the Act. A restructuring fee or processing fee or a payment of any description would likewise answer the description of “other charge in respect of the moneys borrowed.” or “in respect of any credit facility which has not been utilised”. For these reasons, the Court is of the opinion that no substantial question of law arises.
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