2008 (10) TMI 13

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..... justified in holding that loans & advances don’t include interest on securities, bonds, debentures & therefore not liable to tax - there is a difference between loans and advances & investments/securities - matter remanded to ITAT to examine the factual position as to whether the interest involved is on government securities only
ARIJIT PASAYAT and MUKUNDAKAM SHARMA JJ. JUDGMENT Dr. ARIJIT PA .....

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..... e High Court were not justified in holding that loans and advances do not include interest on securities, bonds, debentures and therefore not liable to tax under the provisions of the Interest Act. It is submitted that interest on securities falls within the meaning of "Interest chargeable to tax" as defined under Section 2(7) of the Interest Act. 3. Learned counsel for the respondent assessee-Ba .....

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..... ts have been discussed in detail in two decisions of the Bombay High Court, namely Discount and Finance House of India Ltd. v. S.K. Bhardwaj, CIT reported in MANU/MH/0628/2002, as also in another decision of the Bombay High Court reported in MANU/MH/0629/2002 in the case of CIT v. United Western Bank Ltd. It is not in dispute that the revenue has accepted the aforesaid two judgments of the Bombay .....

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