2009 (8) TMI 52

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....ing Counsel for the appellant. ORDER 1. The Revenue has preferred this appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act") against order dated 9.1.2006 of the Income Tax Appellate Tribunal, Chandigarh Bench 'A' in I.T.A.No.3/Chandi/2004 for the assessment year 1996-97, proposing to raise following substantial question of law:- "Whether on the facts and circumstanc....

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.... Court, cited supra. The appellant is a financial institution as well as credit institution and is providing finance for setting up industrial projects within the State of Punjab. The appellant in order to finance these projects, entered into a further agreement with IDBI/SIDBI for refinancing of the projects. As per the terms of the refinancing scheme where assistance is provided by IDBI/SIDBI to....

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....tions is not includible in the chargeable interest under the Interest Tax Act. Therefore, the Assessing Officer has erred in subjecting to tax the interest amounting to Rs.12,27,10,261/- paid to the IDBI/SIDBI under the Interest Tax Act. Accordingly, the Assessing Officer is directed to recompute the chargeable interest after excluding the interest of Rs.12,27,10,261/-." 4. The above findings h....