2011 (9) TMI 586

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..... n of law answered against revenue. Amount collected from customers whether chargeable to Interest Tax - Held That:- Separate account in respect of the amounts, though collected as additional which was in fact towards payment of interest-tax does compels us to hold that the amounts so collected were not "interest" within the meaning of Sec. 2(7) of the Act and hence could not be treated as charg .....

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..... e Authorities were correct in holding that the interest tax components collected from customers was not liable to interest tax? 2. In the appeal preferred by the revenue against the very same assessee in ITA No. 580/2008, this Court relying on the judgement rendered in ITA. No. 137/2008 for the assessment year 1997-98 has held as under: "3. Whether the amount colleted by the respondent-assesse .....

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..... . In view of the aforesaid judgment, here also with the concurrent finding of fact, the authorities have held that the amount collected by the assessee is hire purchase charges and not interest. There is no liability to pay tax as such. No case is made out for interference with the orders passed by the lower authorities. 5. Insofar as the second substantial question of law is concerned, it is al .....

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