1997 (7) TMI 101

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.... by SYED SHAH MOHAMMED QUADRI J.--This is a reference under section 256(1) of the Income-tax Act. At the instance of the assessee, the following question is referred to this court for opinion : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is justified in holding that the appellant company is not a financial company within the meaning of secti....

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....ee carried the matter in appeal before the Income-tax Appellate Tribunal, Hyderabad. On June 15, 1987, the Tribunal dismissed the appeal taking the view that the assessee is not a financial company within the meaning of the said provision. It is out of that order that the above question has arisen. Sri K. V. S. Bhaskara Rao, learned counsel for the petitioner, strenuously contends that the asse....

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....from April 1, 1976, to April 1, 1986. It reads as under : "(iv) a loan company, that is to say, a company [not being a company referred to in sub-clauses (i) to (iii)] which carries on, as its principal business, the business of providing finance, whether by making loans or advances or otherwise ;" A financial company among others, includes (1) a loan company which is explained to be a compa....

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.... firstly, that the company must be a loan company ; secondly, the principal business of the company must be that of providing finance ; and thirdly, that providing of finance may be either by way of loans or advances or otherwise. The expression "or otherwise" has to be construed ejusdem generis, that means it must be construed in the same sense in which the words preceding the expression under in....