COMMISSIONER OF INCOME TAX Vs. CANARA BANK

JUDGEMENT

(1.) THE present references have been made by the Income Tax Appellate Tribunal at the instance of the department. These references retain to the assessment years 1979 -80, 1981 -82 to 1985 -86. The questions of law required to be answered are as follows

(2.) WHETHER , on the facts and in the circumstances of the case, the Tribunal was right in holding that the contention of the assessee that the rediscounting interest paid on bills did not accrue or arise to the axis -bank by reason of diversion of such discount through an over riding title in favour of the Reserve bank of India and the IDBI and hence did not form part of the chargeable interest under the provisions of the Interest -tax Act, 1974 ?

(3.) WHETHER , on the facts and in the circumstances of the case, the Tribunal is justified in holding that the transactions contemplated between the assessee and the RBI/IDBI in refinancing scheme framed by the RBI/IDBI is an integrated transaction and cannot be considered as two separate transactions ?