2016 (4) TMI 1132

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.... the Respondent : Mr. Kapil Goel, Advocate ORDER 1. This appeal by the Revenue is against the order dated 17th June 2015 passed by the Income Tax Appellate Tribunal ("ITAT") in ITA No. 5419/Del/2012 for the Assessment Year ("AY") 2009-10. 2. The question sought to be urged by the Revenue is whether the ITAT was justified in holding that the sum of Rs. 93,68,870 debited to the Profit & Los....

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....arges as it was not an interest amount. 4. In the assessment proceedings, the AO examined the agreement entered into between the GTFL and the Assessee. The AO disbelieved the Assessee"s contention that the aforementioned amount constituted factoring charges. According to the AO as per the agreement, GTFL would advance a loan to the Assessee on which the Assessee was liable to pay interest @13%.....

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....his Court in CIT v. Cargill Global Trading (P) Ltd. 335 ITR 94 (Del.) also held likewise. 6. Mr. Kapil Goel, learned counsel for the Assessee, points out that the Revenue's Special Leave Petition against the judgment of this Court in Cargill Global Trading (supra) was dismissed by the Supreme Court on 10th May 2012 in CC No. 19572/2011. 7. The Court first notes that under Section 194A of....

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....nonymous for bill discounting facility. As per section 2(28A) of the Income Tax Act, 1961, discounting charges are not covered under the definition of interest." 8. Further the Court finds that the term sheet issued by the GTFL showed that the interest at 13% pa will be charged in the event of repayment of any borrowings. This is different from the factoring charges @0.10% payable to GTFL. As a....