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TMI Blog2008 (1) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... or loss of interest, by whatever name it may be called - Since the amount received by the assessee is not relatable to a loan or advance given by the assessee to the Reserve Bank of India - Decided in favor of the assessee - ITA No. 330 to 332 of 1986. - - - Dated:- 3-1-2008 - GUPTA V. B., MADAN B. LOKUR JJ Karan Khanna for the Assessee. J.R. Goel for the Commissioner. JUDGMENT 1. The following question of law has been referred for our opinion in respect of the assessment years 1981-82, 1982-83 and 1983-84 : "Whether on the facts and in the circumstances of the case, the amounts of Rs. 23,37,224, Rs. 59,88,360 and Rs. 74,92,486 received by the assessee as export subsidy from the Reserve Bank of India were chargeable a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year 1977-78. The Tribunal has made a reference in this court in respect of the assessment year 1977-78 and that reference is listed as I.T. R. No. 357 of 1984. We are told by learned counsel for the assessee that approval of the Committee on Disputes in respect of that reference has been sought but no decision has yet been taken by the Committee and the broad facts of that reference are also indicated above. 5. In view of the opposing contention, the only question that we are concerned with is whether the amount received by the assessee would fall within the meaning of the word "interest" as defined in the Interest-tax Act, 1974. Learned counsel for the assessee has placed before us the definition of "interest" which appears in sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only an export subsidy. 7. We are in agreement with the view canvassed by learned counsel for the assessee. Admittedly, no loan or advance was given by the assessee to the Reserve Bank of India. Any amount received by the assessee from the Reserve Bank of India would be in the nature of export credit subsidy or compensation for loss of interest, by whatever name it may be called. But that will not convert the amount received by the assessee from the Reserve Bank of India into " interest" as defined in section 2(7) of the Interest-tax Act, 1974. Since the amount received by the assessee is not relatable to a loan or advance given by the assessee to the Reserve Bank of India. 8. That being the position, we are of the view that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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