Director Of Income-Tax…… Appellantinternational Taxation, Mumbai v. Hongkong & Shanghai Banking…… Respondentcorporation Ltd., Mumbai

1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2602 of 2010 Director of Income-Tax…… AppellantInternational Taxation, Mumbai Vs. Hongkong & Shanghai Banking…… RespondentCorporation Ltd., Mumbai Mr. Suresh Kumar, Advocate for Appellant.Mr. A.K.Jasani, Advocate for respndent. P.C. : 1.In the present case, re-discounting charges paid by the assessee were held not chargeable to tax by relying upon the decision of this court in the case of Commissioner of Income-Tax vs. Bank of Maharashtra, reported in Volume 264, ITR 568. Subsequently the Apex Court in the case of C.I.T. vs. Canara Bank, reported in (2007), 293 ITR 115 (SC) has affirmed the decision of this Court and held that the rediscounting charges paid by a bank to I.D.B.I. would not be chargeable to interest under Section 2(7) of Interest Tax Act, 1974. In this view of the matter, the appeal is dismissed. (Smt. R.P. SondurBaldota, J.) ( J.P. Devadhar, J.)