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TMI Blog2018 (10) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... d AO's order under Section 1/Ahd/17 Nirma 1995-96 25.07.2017 21.12.2010 8(3) r.w.s. 10 Credit & Capital Pvt. Ltd. of the Interest Tax Act, 1974 2/Ahd/17 -Do- 1996-97 -Do- -Do- -Do- 3/Ahd/17 -Do- 1997-98 -Do- -Do- -Do- 2. All the captioned appeals raise similar grievance of applicability of interest tax on certain interest income declared by the assessee company. Therefore all the appeals have been heard together and a common order is being passed for the sake of convenience. 3. We shall take up Int.T.A. No.1/Ahd/2017 concerning AY 1995-96 as a lead case for adjudication purposes. 4. While several grounds alongwith appeal memo were taken, the learned AR for the assessee in the course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n actual ly parked with various parties on which interest has been earned. In these circumstances, i t was contended that the idle money of the assessee placed with various parties are in the character of 'deposits' which is a distinct from expression 'loans and advances' as provided under s.2(7) of the Act. The learned AR therefore asserted that the interest income is not susceptible to interest tax on principles. The learned AR thereafter adverted our attention to the break up of interest income and submit ted that interest income of Rs. 34.24 Lakhs includes Rs. 20 Lakhs towards interest from Vimpson Investment Ltd. The learned AR next referred to the financial statement of the assessee for F.Y. 1994-95 relevant to AY 1995-96 in question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemicals Ltd. (Rs.9,83,219/-) and interest income derived from Alpa Marketing Enterprise (Rs.21,680/-) and submit ted that owing to smallness of the amounts involved he is not will ing to embroil in further controversy and thus does not seek to press the addition in order to avoid protracted litigation. The learned AR accordingly urged for suitable relief. 5.4 The learned AR also submitted that other two appeals are also placed in similar factual matrix with small variances which will be dealt wi th at appropriate place in the succeeding paragraphs. 6. The learned DR, on the other hand, relied upon the order of the CIT(A). 7. We have careful ly considered the rival submissions. The chargeabili ty of interest tax on interest derived from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestment in debentures of Vimpson Inv. Ltd. In parity with the Int.T.A. No.01/Ahd/2017 (supra), the assessee gets relief on this amount. The other stream of interest income of Rs. 8,50,685/- received from Torrent Export Ltd. would be susceptible to interest tax in conformity with the order of the CIT(A) in view of the concession extended on behalf of the assessee owing to smallness of the amount. 10. In the result , appeal of the assessee in Int.T.A. No. 02/Ahd/2017 is partly al lowed. 11. The chargeable interest in Int.T.A. No. 03/Ahd/2017 concerning AY 1997-98 comprises of (i) interest received from Nirman Corporation Rs. 34,28,806/-, (ii) interest from Ashwin C & sons Rs. 1,216/- and (iii) interest from Vimpsons Rs. 6,61,876/- agreega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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