https://www.taxtmi.com/caselaws?id=63037 Interest-taxability under the Interest-tax Act turns on whether the receipt is interest on loans and advances, not on genuine deposits. Interest on debentures, bonds and securities was treated as outside the taxable category on the facts considered, applying the view favourable to the assessee where two interpretations were possible. Deposits with RBI, banks and IDBI, including fixed deposits and certificate deposits, were also held not taxable because deposits are legally distinct from loans and advances. By contrast, interest on loans to DDA and UTI was included in chargeable interest, while the remaining items required factual reconsideration and were remitted for fresh determination. en-us Fri, 02 Jan 2004 00:00:00 +0530 Fri, 28 Jun 2024 09:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=63037 Interest-taxability under the Interest-tax Act turns on whether the receipt is interest on loans and advances, not on genuine deposits. Interest on debentures, bonds and securities was treated as outside the taxable category on the facts considered, applying the view favourable to the assessee where two interpretations were possible. Deposits with RBI, banks and IDBI, including fixed deposits and certificate deposits, were also held not taxable because deposits are legally distinct from loans and advances. By contrast, interest on loans to DDA and UTI was included in chargeable interest, while the remaining items required factual reconsideration and were remitted for fresh determination. Case-Laws Income Tax Fri, 02 Jan 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=63037