IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 13.08.2008 CORAM: THE HONOURABLE MR.JUSTICE K.RAVIRAJA PANDIAN AND THE HONOURABLE MR.JUSTICE P.P.S.JANARTHANA RAJA Tax Case (A) No.410 to 412 of 2008 and M.P.Nos.1 of 2008 in TC.Nos.411 & 412/08 The Commissioner of Income Tax, Coimbatore .. Appellant in all TC(A) -vs- M/s Annamalai Finance Ltd., now known as Shiva Textile Yarn Ltd., 252, Mettupalayam Road, Coimbatore 641 043. .. Respondent in all TC(A) TAX CASE filed under Section 260 A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, MADRAS 'D' Bench, Chennai dated 08.06.2007 in ITA.Nos.28,29,30/Mds/2005 against the order of the Commissioner of Income Tax(Appeals) Coimbatore dated: 17.01.2005 in ITA.Nos.8 & 18-c/2000-01 and 243/2003-04, and against the order of Joint Commissioner of Income Tax, Special Range- I, Coimbatore to the Assessment Years 1997-98, 1998-1999, and 1999- 2000, dated 22.3.2000, 26.04.2000 and 29.10.2003 in PAN/GIR No: 49- 502-CQ-2204, 45-502-CQ-2204, C-Q-2204/A-23. For Appellant : Mr.T.Ravikumar For Respondent: No Appearance J U D G M E N T (Judgment of the Court was delivered by K.RAVIRAJA PANDIAN,J) The revenue on appeal against the orders of the Income Tax Appellant Tribunal MADRAS 'D' Bench, Chennai dated 08.06.2007 in ITA.Nos.28,29,30/Mds/2005 in respect of the assessment years 1997-98, 1998-99 and 1999-2000 by formulating the following common question of law:- "Whether the amounts collected by the assessee for belated payment is chargeable to levy of interest tax under the interest tax Act in the light of the definition of Financial Company under Sec.5-B which includes the hire purchase finance company?". 2. It is submitted across the Bar that the issue raised in the present appeals has already been covered against the revenue in the decisions of this Court dated 01.02.2006 made in T.C.A.No.55 of 2006 https://hcservices.ecourts.gov.in/hcservices/ and 26.10.2006 in T.C.A.No.2440 of 2006. 3. In T.C.A.No.2440 of 2006, after referring to the decision of Kerala High Court in Commissioner of Income Tax vs. Stae Bank of Travancore (1997) 228 ITR 40, wherein it is held as follows:- "The character of an overdue bill is wholly distinct from loans and advances, and the interest on the loans and advances alone is taxable under the Interest Tax Act. The character of an overdue bill is not synonymous with loans and advances. Therefore, the interest on overdue bills is to be excluded from chargeable interest under the Interest Act, 1974". this Court dismissed the appeal filed by the revenue. Following the same, the present appeals are also dismissed. No costs. Consequently, connected miscellaneous petitions are also dismissed. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar rg To 1.The Assistant Registrar, Income Tax Appellate Tribunal. Bench 'B' Rajaji Bhavan, 3rd floor, Besant Nagar, chennai. 2.The Secretary, Central Board of Direct Taxes, New Delhi. 3.The Commissioner of Income Tax (Appeals) Coimbatore. 4.The Joint Commissioner of Income Tax, Special Range I, Coimbatore. 1 CC To Mr.N.Muralikumaran, Advocate, SR NO.45352 Tax Case(Appeal) Nos.410 to 412 of 2008 ssm(co) pmk/2.9.2008. https://hcservices.ecourts.gov.in/hcservices/