https://www.taxtmi.com/caselaws?id=256328 The Court ruled in favor of the appellant, a finance company, stating that interest tax cannot be charged on interest received on trade advances. The Tribunal allowed the appeal, emphasizing that the advances were not intended as loans but for purchasing machinery, with interest received being adjusted against the goods' price. Previous Division Bench judgments consistently favored the appellant, distinguishing the nature of the advance from typical financing transactions. The Court dismissed the appeal, citing past decisions and confirming that interest tax does not apply to interest received on trade advances. en-us Mon, 02 Feb 2015 00:00:00 +0530 Mon, 08 Aug 2022 11:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=256328 The Court ruled in favor of the appellant, a finance company, stating that interest tax cannot be charged on interest received on trade advances. The Tribunal allowed the appeal, emphasizing that the advances were not intended as loans but for purchasing machinery, with interest received being adjusted against the goods' price. Previous Division Bench judgments consistently favored the appellant, distinguishing the nature of the advance from typical financing transactions. The Court dismissed the appeal, citing past decisions and confirming that interest tax does not apply to interest received on trade advances. Case-Laws Income Tax Mon, 02 Feb 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=256328