https://www.taxtmi.com/caselaws?id=330449 Interest earned on surplus funds placed as deposits with SAIL was analysed under section 2(7) of the Interest Tax Act, 1974, which was treated as an exhaustive definition covering only interest on loans and advances together with specified inclusions and exclusions. The distinction between a loan and a deposit was treated as material: loans are advanced on terms fixed by the lender, while deposits are made to earn a return on investment. Applying the Special Bench view that deposits are not loans, the interest on such deposits was held outside section 2(7) and therefore not chargeable to interest tax. Consistency with the Revenue's acceptance of that view for earlier years was also noted. en-us Thu, 21 Jul 2016 00:00:00 +0530 Thu, 01 Sep 2016 10:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=330449 Interest earned on surplus funds placed as deposits with SAIL was analysed under section 2(7) of the Interest Tax Act, 1974, which was treated as an exhaustive definition covering only interest on loans and advances together with specified inclusions and exclusions. The distinction between a loan and a deposit was treated as material: loans are advanced on terms fixed by the lender, while deposits are made to earn a return on investment. Applying the Special Bench view that deposits are not loans, the interest on such deposits was held outside section 2(7) and therefore not chargeable to interest tax. Consistency with the Revenue's acceptance of that view for earlier years was also noted. Case-Laws Income Tax Thu, 21 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=330449