TMI Blog2007 (4) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee before us is a nationalised bank. In the course of its carrying on business, it entered into several leasing transactions. The assets were claimed to have been owned by the assessee bank and accordingly, depreciation was claimed in respect of those assets. Revenue, on the other hand, was of the view that these leasing transactions are de facto finance transactions and the actual ownership of the assets actually vested in the lessee. The depreciation was on that basis declined by the AO. Accordingly, a component of the lease rentals received by the assessee bank was held to be in the nature of interest receipts. In the impugned assessment order, the AO has held that since this receipt is in the nature of interest, the same is liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is only interest on 'loans and advances', apart from what is specifically included in s. 2(7)(a) and (b). It is not the Revenue's case that the case of the assessee is covered by the scope of cls. (a) and (b) of sub-s. (7). All that we are required to examine, therefore, is whether or not interest component of a finance leasing transaction can be said to be 'interest on loans and advances'. 5. We have taken note of the fact that a co-ordinate Bench of this Tribunal has, vide order dt. 8th Sept., 2006, held that "we are of the opinion that there are sufficient findings in the orders of the CIT(A) to show that what the assessee has entered into are only loan or finance transactions and so documented as to give colour of lease transactions.. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessarily mean that what can be attributed. to 'interest component' in a finance leasing transaction is interest on 'loans or advances'. The expression 'loan' has been defined in the case of Life Insurance Corporation of India vs. Jt. CIT (2002) 74 TTJ (Mumbai) 624 : (2002) 82 ITD 749 (Mumbai) by stating that "when a person lends money to the other, with or without interest, it is loan". As for the advances, the co-ordinate Bench observed that "the term 'advances' may have several meanings, but for our purposes it only means advances which are in the nature of loans" It would thus follow that unless there is lending of money by one person to another, it cannot be said to be loan or advance. The next question then arises whether extending ' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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