TaxTMI 
TaxTMI 
2008 (1) TMI 537
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....in respect of the assessment years 1981-82, 1982-83 and 1983-84 : "Whether on the facts and in the circumstances of the case, the amounts of Rs. 23,37,224, Rs. 59,88,360 and Rs. 74,92,486 received by the assessee as export subsidy from the Reserve Bank of India were chargeable as interest under the Interest-tax Act, 1974 for the assessment years 1981-82, 1982-83 and 1983-84 respectively ?" 2. Un....
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....ccording to learned counsel for the Revenue, this amount was taxable under the Interest-tax Act, 1974, being interest received by the assessee. However, the contention of the assessee was that this was export subsidy received by it and was not interest. Therefore, it was not taxable under the Interest-tax Act, 1974. The view canvassed by the assessee was not accepted either by the Assessing Office....
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....tax Act, 1974. Learned counsel for the assessee has placed before us the definition of "interest" which appears in section 2(7) of the Interest-tax Act, 1974. It reads as under : "`interest' means interest on loans and advances made in India and includes- (a) commitment charges on unutilised portion of any credit sanctioned for being availed of in India ; and (b) discount on promissory notes an....
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....es given to its customers under the scheme would certainly fall within the definition of "interest" as defined in section 2(7) of the Act. It is only to make up the loss on interest that the assessee is suffering due to the export credit subsidy scheme that the Reserve Bank of India is compensating the assessee. According to learned counsel for the Revenue, there is no interest received by the ass....