https://www.taxtmi.com/caselaws?id=119469 The definition of "interest" under section 2(7) of the Interest-tax Act, 1974 is exhaustive and is confined to interest on loans and advances, subject only to the statutory inclusions. Overdue amounts received for delayed payment under bill discounting transactions, hire purchase instalments and lease rentals are treated as compensation or liquidated damages for delay, not as interest on loans and advances. The statutory concept cannot be expanded to cover every receipt resembling interest. Accordingly, such overdue receipts are not chargeable to interest tax. en-us Wed, 09 May 2007 00:00:00 +0530 Wed, 11 Jul 2012 12:45:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119469 The definition of "interest" under section 2(7) of the Interest-tax Act, 1974 is exhaustive and is confined to interest on loans and advances, subject only to the statutory inclusions. Overdue amounts received for delayed payment under bill discounting transactions, hire purchase instalments and lease rentals are treated as compensation or liquidated damages for delay, not as interest on loans and advances. The statutory concept cannot be expanded to cover every receipt resembling interest. Accordingly, such overdue receipts are not chargeable to interest tax. Case-Laws Income Tax Wed, 09 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119469