9911796707
TMI Blog2009 (8) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... the taxable interest? – Held that - The assessee received income from interest on the loans advanced. Interest was passed on to IDBI and SIDBI under Refinancing Scheme. However, the said income was added to the income of the assessee. The CIT(A), held that interest paid to IDBI and SIDBI under Refinancing Scheme was permissible deduction – ITAT confirmed the order of CIT(A) – Held that - income ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest earned on refinancing operations is to be excluded from the taxable interest?" 3. The assessee received income from interest on the loans advanced. Interest was passed on to IDBI and SIDBI under Refinancing Scheme. However, the said income was added to the income of the assessee. The CIT(A) following judgment of the Kerala High Court in CIT v. State Bank of Travancore (1997) 228 ITR 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... title to the interest received from the industrial concerns. In fact, IDBI/SIDBI have first claim over the amounts received from the industrial concerns. The amounts received by the PSIDC from the IDBI have to be passed on to the borrower for whom it is sanctioned. After going through the agreements entered into between the IDBI and the PSIDC in 1984 and 1995, I have come to the conclusion that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd learned counsel for the appellant. 6. Interest income earned by the assessee has been held to be adjustable towards the interest paid to the IDBI and SIDBI under Refinancing Scheme. The view of the Tribunal is consistent with the view taken by the Kerala High Court in CIT v. State Bank of Travancore (supra). 7. We are of view that in these circumstances, no substantial question of law a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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