https://www.taxtmi.com/caselaws?id=17438 Section 40A(8) treats a loan company as a financial company only where its principal business provides finance through loans, advances, or comparable arrangements. The words "or otherwise" are read ejusdem generis with loans and advances, requiring finance in which the recipient has no proprietary interest in the funds. Chit fund distributions, under which members receive the chit amount with a proprietary interest, fall outside this description. The definition of "financial institution" in the Reserve Bank of India Act is confined to that Act's Chapter III-B and does not govern interpretation of section 40A(8) unless the Income-tax Act so provides. en-us Tue, 01 Jul 1997 00:00:00 +0530 Tue, 22 Sep 2009 13:42:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17438 Section 40A(8) treats a loan company as a financial company only where its principal business provides finance through loans, advances, or comparable arrangements. The words "or otherwise" are read ejusdem generis with loans and advances, requiring finance in which the recipient has no proprietary interest in the funds. Chit fund distributions, under which members receive the chit amount with a proprietary interest, fall outside this description. The definition of "financial institution" in the Reserve Bank of India Act is confined to that Act's Chapter III-B and does not govern interpretation of section 40A(8) unless the Income-tax Act so provides. Case-Laws Income Tax Tue, 01 Jul 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17438