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TMI Blog2018 (8) TMI 1553X X X X Extracts X X X X X X X X Extracts X X X X ..... ing fee paid by the assessee under these circumstances, in the opinion of this Court, is not interest, is unpersuasive. Firstly, Section 2(28A) of the Act is using wide terms and comprehensively not only ‘interest’ per se and also the other amounts, such as deposits, service fee or “other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised”. This broad definition led the Court to the interpretation in the case of Gujarat Guardian Ltd. (2009 (1) TMI 13 - HIGH COURT DELHI) that the pre-payment premium or charges were “interest” within the meaning of the Act. A restructuring fee or processing fee or a payment of any description would likewise answer the description of “othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. It was held on the merits that the broad nature of the definition of interest under Section 2(28A) of the Act includes not only interest but also the other amounts. This Court notices that the ITAT relied upon the judgment in the case of Commissioner of Income Tax vs. Gujarat Guardian Limited , 220 CTR 526 and reasoned as follows:- 7.2. The case of the assessee on merit is also governed by section 2(28A) of the I.T. Act which provides the definition of interest as under: Interest , means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also the other amounts, such as deposits, service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised . This broad definition led the Court to the interpretation in the case of Gujarat Guardian Ltd. (supra) that the pre-payment premium or charges were interest within the meaning of the Act. A restructuring fee or processing fee or a payment of any description would likewise answer the description of other charge in respect of the moneys borrowed..... or in respect of any credit facility which has not been utilised . For these reasons, the Court is of the opinion that no substantial question of law arises. The appeal is therefore dismissed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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