https://www.taxtmi.com/caselaws?id=19241 The High Court upheld the Tribunal's decision that the amounts collected by the non-nationalized banking company at the rate of seven per cent. of the interest on loans and advances do not qualify as "interest" under the Interest-tax Act. The Court ruled that these collections were meant to cover the tax payable by the bank and were not considered interest on loans and advances. The Court also highlighted that there was no prohibition for the bank to collect this tax amount from its borrowers, ultimately deciding in favor of the assessee-bank. en-us Wed, 01 Feb 1995 00:00:00 +0530 Wed, 04 Nov 2009 18:12:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19241 The High Court upheld the Tribunal's decision that the amounts collected by the non-nationalized banking company at the rate of seven per cent. of the interest on loans and advances do not qualify as "interest" under the Interest-tax Act. The Court ruled that these collections were meant to cover the tax payable by the bank and were not considered interest on loans and advances. The Court also highlighted that there was no prohibition for the bank to collect this tax amount from its borrowers, ultimately deciding in favor of the assessee-bank. Case-Laws Income Tax Wed, 01 Feb 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19241