2002 (7) TMI 225
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....t-tax Act, 1974, as assessed by the AO under s. 8(3) of the Interest-tax Act. 2. The learned counsel for the assessee submitted that the learned AO in his order considered the financial statement of the assessee and in view of s. 2(5B)(iv) considers the assessee's income as business of providing finance whether by making loans and advances or otherwise. He, therefore, proceeded to consider his own application of mind in applying earning of interest as that of credit instituted as per s. 2(5A) of the Interest-tax Act. He, therefore, completed the assessment ex parte under s. 8(3)of the Interest-tax Act which the learned CIT(A) on examination of assessment record inclined to agree with the finding of the AO. He submitted a paper book wherein....
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....the normal course of business having transacted trading business by dealing in paper which fact has not been dealt with by the lower authorities at all. The amounts of interest received were from the closely-held companies to whom the amounts had been advanced and, therefore, there was never a case where the assessee-company was making available as a principal business, the business of providing finance. He, therefore, submitted that there was no basis before the authorities below to assume that the assessee-company is an investment company which is mainly trading company duly registered with the West Bengal Sales Tax Act to deal in paper goods. 3. The learned Departmental Representative submitted that the learned AO in his order had categ....