2008 (2) TMI 415

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....r the respondent. JUDGMENT The judgment of the court was delivered by DEEPAK VERMA J. - Heard Sri M. V. Seshachala, learned counsel for the appellants and Sri G. Sarangan, senior counsel along with Miss. Vani, learned counsel for the respondent. 2. This appeal is at the instance of the Revenue against the order dated August 9, 2002, passed by the Income-tax Appellate Tribunal in Intere....

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....f the Banking Regulation Act, 1949, from levy of interest-tax in respect of income earned from interest on securities with effect from 1996-97 only. For the relevant year, exemption was held to be not applicable. The other questions were also considered and consequently the Assessing Officer held that interest on securities is required to be brought to tax as per the provisions of the Act. 4. T....

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....three different assessment years were heard analogously and were disposed of by the consolidated order. In view of this, three appeals were preferred in the High Court. We have been given to understand that out of the three appeals, two appeals have already been disposed of on earlier occasion. The order passed by the Division Bench of this court in I. T. A. No. 537 of 2002 decided on November 27,....

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....arises in this batch of civil appeals is whether interest earned by the assessee-banks on dated Government securities was liable to be assessed under section 2(7) read with section 4 of the Interest-tax Act, 1974. In our view, there is a basic difference between loans and advances on the one hand and investments/securities on the other. This difference is indicated in the provisions of the Income-....