TMI Blog2015 (10) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, the Interest Tax Act, 1974 makes it clear that only those words and expressions used in that Act, but not defined therein, would have the same meaning assigned to them in the Income Tax Act, 1961. Therefore, it is only in cases where an expression is not defined in the Interest Tax Act, 1974, for the purpose of application of the said Act that we have to borrow the definition of the same expression in the Income Tax Act, 1961. This case is not of the said type. Therefore, we are of the view that the decision of the Supreme Court in Sahara India Savings and Investment Corporation Limited [2009 (11) TMI 25 - SUPREME COURT OF INDIA] wherein held that for the purpose of Interest Tax Act, 1974, interest on loans and advances will not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the return of interest tax filed for the relevant assessment year, the assessee claimed that this interest is not exigible to interest tax under the Interest Tax Act, 1974. But, the stand taken by the assessee was not accepted by the Assessing Officer. 4. The appeal filed by the assessee was allowed by the Commissioner of Income Tax (Appeals) by an order dated 7.11.2003. But, the decision of the Commissioner of Income Tax (Appeals) was reversed by the Income Tax Appellate Tribunal on an appeal filed by the Revenue. Hence the present appeal. 5. To understand the scope of the dispute, it is necessary to take note of the definition of the expression 'interest' as given in Section 2(7) of the Interest Tax Act, 1974, which is as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. While answering the said question in favour of the assessee, this Court cited with approval the earlier decision in Lakshmi Vilas Bank. 8. Even in Discount and Finance House of India Limited Vs. S.K. Bharadwaj [259 ITR 295], the Bombay High Court pointed out that loans and advances, as a concept, are different and distinct from investments in the commercial sense and also in the accounting sense. Therefore, the Court held that interest received from the Reserve Bank of India on dated Government securities will not fall within the meaning of the expression 'interest on loans and advances' under Section 2(7) of the Act. A similar view was expressed in another decision of the Bombay High Court in Commissioner of Income Tax Vs. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest Tax Act, 1974 defined the expression 'interest' at a time when the expression 'interest' was not defined in the Income Tax Act. According to the learned Standing Counsel, the expression 'interest' came to be defined in the Income Tax Act, 1961 for the first time under the Finance Act, 1976 with effect from 1.6.1976 with the insertion of Sub-Section (28A) of Section 2. Therefore, drawing our attention to the definition of the said expression in the Income Tax Act, 1961, the learned Standing Counsel contended that the definition is so exhaustive as to include even a deposit or any kind of obligation. 12. But, we are unable to agree. If the case on hand had arisen solely out of the Income Tax Act, 1961, we wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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