COMMNR. OF INCOME TAX, KANPUR vs M/S.SAHARA INDIA SAVINGS&INVEST.CORP.LTD

The Supreme Court examined the definition of 'interest' under Section 2(7) of the Interest Tax Act, 1974, determining that the term encompasses various forms of interest including commitment charges and discounts on promissory notes. The Court held that the respondent company, incorporated under the Indian Companies Act, 1956, is subject to tax on chargeable interest as defined in the Act. The ruling clarified the scope of 'chargeable interest' and affirmed the applicability of the Interest Tax Act to the respondent's financial activities.