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2018 (12) TMI 1518 - HC - Income TaxInterest chargeable to Interest Tax or not - Minimum guarantee charges received by the assessee from companies to whom “financial assistance” is given - ITAT held “minimum guarantee charges” received by the assessee from companies to whom “financial assistance” is given is not 'interest' chargeable to Interest Tax - whether Tribunal was right in holding that the financial assistance is not a loan or advance but an investment? - Held that:- Revenue would submit that the Tribunal, in its impugned order, followed the decision of the Allahabad High Court in the case of CIT Vs. Sahara India Savings and Investment Corporation Ltd. [2003 (9) TMI 74 - ALLAHABAD HIGH COURT]. The said decision has been upheld by Hon'ble Supreme Court [2009 (11) TMI 25 - SUPREME COURT OF INDIA] in the decision and the substantial question of law has been answered in favour of the assessee as held Interest-tax Act is attracted only in respect of interest on loans and advances and the additional discount charges which is an amount given as a premium, would not attract the provisions of the Interest-tax act. The Tribunal is therefore correct in excluding additional discount charges from the chargeable interest under the Interest-tax Act.
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