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2018 (10) TMI 369 - HC - Income TaxAdditional finance charges as eligible to interest tax - whether additional finance charges are not in the nature of interest on loans and advances as defined under Section 2(7) of the Interest Tax Act? - Held that:- The above referred substantial questions of law have been answered in favour of the assessee by the Supreme Count in the judgment reported in M/S. STATE BANK OF PATIALA VERSUS COMMISSIONER OF INCOME TAX, PATIALA [2015 (11) TMI 869 - SUPREME COURT] wherein held Section 2(7) itself makes a distinction between loans and advances made in India and discount on bills of exchange drawn or made in India. It is obvious that if discounted bills of exchange were also to be treated as loans and advances made in India there would be no need to extend the definition of “interest” to include discount on bills of exchange. Indeed, this matter is no longer res integra. - Decided in favour of the assessee and against the Revenue
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