https://www.taxtmi.com/caselaws?id=769145 Madras HC ruled that amendments to the Interest Tax Act 1974 in 1991 did not authorize levy of interest tax on interest paid by scheduled banks or credit institutions under Section 4. Even if the assessee qualified as a credit institution under Section 2(5A) read with Section 2(5B), it was not liable to pay interest tax on interest paid on deposits from directors, shareholders, or group companies. Interest tax is only payable when amounts are lent and interest charged by the assessee. The court held that invoking Sections 8, 9, 10, and 12A was without jurisdiction, ruling in favor of the assessee against the Income Tax Department. en-us Wed, 16 Apr 2025 00:00:00 +0530 Tue, 14 Jul 2026 15:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769145 Madras HC ruled that amendments to the Interest Tax Act 1974 in 1991 did not authorize levy of interest tax on interest paid by scheduled banks or credit institutions under Section 4. Even if the assessee qualified as a credit institution under Section 2(5A) read with Section 2(5B), it was not liable to pay interest tax on interest paid on deposits from directors, shareholders, or group companies. Interest tax is only payable when amounts are lent and interest charged by the assessee. The court held that invoking Sections 8, 9, 10, and 12A was without jurisdiction, ruling in favor of the assessee against the Income Tax Department. Case-Laws Income Tax Wed, 16 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769145