https://www.taxtmi.com/caselaws?id=209697 Interest on a trade advance made for purchase of machinery under a hire-purchase or lease arrangement was held outside the Interest Tax Act, 1974 because the payment was part of a commercial acquisition transaction, not a loan repayable as such. The distinction between a loan and a trade advance was treated as material, and the fact that interest accrued for delay in delivery did not change the underlying character of the transaction into a lending arrangement. On that construction of the charging provisions and the definition of interest, the receipt was not chargeable to interest tax. en-us Wed, 06 Jul 2011 00:00:00 +0530 Mon, 26 Mar 2012 15:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=209697 Interest on a trade advance made for purchase of machinery under a hire-purchase or lease arrangement was held outside the Interest Tax Act, 1974 because the payment was part of a commercial acquisition transaction, not a loan repayable as such. The distinction between a loan and a trade advance was treated as material, and the fact that interest accrued for delay in delivery did not change the underlying character of the transaction into a lending arrangement. On that construction of the charging provisions and the definition of interest, the receipt was not chargeable to interest tax. Case-Laws Income Tax Wed, 06 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=209697