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TMI Blog2016 (8) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 2(7) along with the expression ‘loan’ should take its colour from ‘loan’ and cannot be given wider interpretation to include deposit as well, otherwise, money deposits given for investments, etc., would also qualify as ‘advances’ and interest thereon would become exigible to the Interest-tax Act. Such a situation was never contemplated by the legislature. Hence, intercorporate deposit is not i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the following common substantial questions of law: [A] Whether the Appellate Tribunal is right in law and on facts in holding that the income from interest on inter corporate deposit was not chargeable to tax under the Interest Tax Act? [B] Whether the Appellate Tribunal is right in law and on facts in holding that inter corporate deposit can neither be treated as a loan nor an advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... timately, the Assessing Officer passed the assessment order on 22.09.2004. Against the said order, the assessee filed appeals before the CIT(A). However, the CIT(A) dismissed the appeals vide order dated 22.04.2004 02.06.2005. Being aggrieved by the same, the assessee preferred second appeals before the Tribunal. The Tribunal allowed the appeals filed by the assessee vide order dated 30.11.2005. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slature. Hence, intercorporate deposit is not in the nature of loan or advance within the meaning of section 2(7) and therefore, not chargeable to the interest-tax under section 5. 4. We concur with the view taken by the Delhi High Court in the aforesaid decision and consequently, answer question nos.(1) (2) in favour of the assessee and against the Revenue. Since the main issue is decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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