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TMI Blog2016 (8) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... ge of the two activities which is 58.67%, cannot be said to be exclusively or almost exclusively. Therefore, it will not be a miscellaneous company within the meaning of clause (vi) of section 2(5B) of the Act. There is no other provision which is stated to be applicable to the assessee. In these circumstances, it is right in holding that the assessee was not a finance company and not liable to interest tax Act. Appellate tribunal is right in law and on facts in holding that the assessee company is not a finance company within the meaning of Section 2(5B) of the Interest Tax Act - Tax Appeal No. 1175, 1176, 1177, 1178 of 2008 - - - Dated:- 11-7-2016 - KS Jhaveri And G. R. Udhwani, JJ. For the Appellant : Nitin K Mehta, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT (Appeals) for the above assessment year. The Appellate Tribunal decided all these appeals vide a common order dated 26.10.2007 and dismissed the appeals filed by the Department and partly allowed the appeal filed by the assessee and held that the assessee is a not a company within the meaning of Section 2(5B) of the Interest tax Act. 4. Learned Counsel for the appellant Department has submitted that the assessee company is covered within the provisions of Income Tax Act within the meaning of Section 2(5B) of the Act. The assessee had also applied for NBFC status. It is further submitted that during the assessment proceedings, the assessee had submitted that the principle business is security trading, broking and merchant banking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In these circumstances, in our opinion, it cannot be said that the principle business of the assessee was in either of the two activities i.e., hire purchase loan business of investment business, the individual activity being less than 50%. The combined percentage of these two activities is 58.67% but by virtue of definition of clause (vi) of the residuary definitions of the Finance Act in section 2(5B), for a miscellaneous finance company, that is to say, a company which carries on exclusively or almost exclusively two or more classes of businesses referred to in the preceding sub-clauses. The percentage of the two activities which is 58.67%, cannot be said to be exclusively or almost exclusively. Therefore, it will not be a miscellaneou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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