https://www.taxtmi.com/caselaws?id=12178 Interest on securities, bonds and debentures held by a banking company as permanent investments is not chargeable to interest-tax under section 2(7) of the Interest-tax Act, 1974, because the Act taxes interest on loans and advances and not investment income. The Court treated the omission of the earlier express exclusion of interest on securities from section 2(7) as clarificatory, not as widening the charging provision. It also distinguished lending from investing in banking accounts and balance-sheets, noted the limited role of section 26C, and held that taxing Government securities held as permanent investments would be inconsistent with the Act's anti-inflationary object. en-us Wed, 04 Dec 2002 00:00:00 +0530 Thu, 18 Feb 2010 16:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12178 Interest on securities, bonds and debentures held by a banking company as permanent investments is not chargeable to interest-tax under section 2(7) of the Interest-tax Act, 1974, because the Act taxes interest on loans and advances and not investment income. The Court treated the omission of the earlier express exclusion of interest on securities from section 2(7) as clarificatory, not as widening the charging provision. It also distinguished lending from investing in banking accounts and balance-sheets, noted the limited role of section 26C, and held that taxing Government securities held as permanent investments would be inconsistent with the Act's anti-inflationary object. Case-Laws Income Tax Wed, 04 Dec 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12178