9911796707
TMI Blog2012 (12) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... ] reported in CIT v. Cargill Global Trading Ltd. [2011 (2) TMI 209 - DELHI HIGH COURT] the definition of 'interest' under section 2(28A) and analyzing the contents of two circulars issued by the CBDT No. 65 dated 02.09.1971 and subsequent one dated 22.03.1993 (Circular No. 647)(sic) that discounting charges did not amount to interest and was not subject to tax - deletion of disallowance u/s 40(a)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act?" 2. The assessee in this case is incorporated in Singapore and is a tax resident of that State. During the relevant year it used to provide financial services, including subscription, buying, underwriting or otherwise acquire, own, hold; sell or exchange securities or investments of any kind. It filed its returns which were assessed to tax on the basis of scrutiny assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Delhi) and set aside the order of the CIT (Appeal) and the AO. The Tribunal also noticed that its order for Assessment Years 2004-05 and 2005-06 had been carried in appeal before this Court which confirmed and adopted the reasoning in its order dated 17.02.2011. In the present case, the Tribunal, therefore, allowed the assessee's appeal, holding as follows: "The discounting charges are to be t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lysed the contents of two circulars issued by the CBDT, being No. 65 dated 02.09.1971 and the subsequent one dated 22.03.1993 (Circular No. 647)(sic), and confirmed the reasoning of the Tribunal that discounting charges did not amount to interest and was not subject to tax. The Court deleted the disallowance under section 40(a)(i) of the Income-tax Act. In view of this reasoning which" this Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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