https://www.taxtmi.com/caselaws?id=60654 An industrial company does not become a financial company or residuary non-banking company under the Interest-tax Act merely because it raises funds through debentures or employee deposits. The definition in section 2(5B) was read contextually, with the distinction between deposits and debentures treated as material, and the RBI meaning of deposit was not applied to convert debentures into deposits for interest-tax purposes. The receipt of such funds was also not treated as an independent financing business where the money was raised only to support the company's own manufacturing or plantation operations. On that reasoning, the charging provision in section 4 did not apply as the company was not a credit institution on the facts. en-us Tue, 26 Jun 2001 00:00:00 +0530 Fri, 07 Jan 2011 13:58:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60654 An industrial company does not become a financial company or residuary non-banking company under the Interest-tax Act merely because it raises funds through debentures or employee deposits. The definition in section 2(5B) was read contextually, with the distinction between deposits and debentures treated as material, and the RBI meaning of deposit was not applied to convert debentures into deposits for interest-tax purposes. The receipt of such funds was also not treated as an independent financing business where the money was raised only to support the company's own manufacturing or plantation operations. On that reasoning, the charging provision in section 4 did not apply as the company was not a credit institution on the facts. Case-Laws Income Tax Tue, 26 Jun 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60654