2006 (8) TMI 581

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.... right in law and on facts in holding that the respondent is liable to interest tax only on the net interest received by it and not the gross interest? (3)Whether the Appellate Tribunal is right in law and on facts in excluding the amount of upfront fees and other income received by the respondent in calculating the chargeable interest under the Income Tax Act, 1974 ? (4)Whether the Appellate Tribunal is right in law in holding that the amounts given to other corporations would be deposits and the interest thereon would not be chargeable interest under the Interest Tax Act, 1974?" So far as the Question No.1 is concerned, the tribunal has considered the issue as under :           &n....

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....o discretion in respect of any part of the transaction, therefore, such transaction was considered as an integral and the interest accruing to the assessee was considered as arising from the entire transactions. It has been further held that the assessee is liable to interest tax only on the net interest received by it. Therefore, in view of that, we are of the opinion that the learned CIT (A) has deleted the addition after following a number of decisions. We find no error in the order of learned CIT (A). Hence, this ground of appeal is rejected in all the Asst. Years." So far as the Question No.3 is concerned, the tribunal has considered the issue as under :              "Be....

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....learned counsel for the assessee relied upon three decisions of ITAT reported in 09 ITD 520(DEL) in the case of Oriental Insurance Co., 82 ITD 749 (Mum) in the case of Life Insurance Corporation and 87 ITD 11 (Del) in the case of Punjab National Bank wherein the Tribunal has pointed out disparity in expression "Loans and Deposits" while discussing the difference of meaning in the expression "Loans and Deposits", the Tribunal in the case of Oriental Insurance Co., vs. DCIT reported in 89 ITD 520 (Del) (Supra) observed as under " In view of the above provisions, the case of the revenue is that deposits with banks and other institutions would fall within the ambit of the word "loans". While the case of the assessee is that 'loans' a....