JUDGMENT
T.L. Viswanatha Iyer, J.
1. Paragraph 4 of the Appellate Tribunal’s order contains extract of the participation certificate and the agreement of transfer entered into between the assessee-bank and the Life Insurance Corporation of India or the like body. Thereunder what has been done is to make the assessee-bank a collecting agent for collection of the debts due to the Corporation, which are transferred to them, in consideration of which the assessee-bank receives remuneration by way of service charges
at the rates specified. Interest on the amounts advanced is thus due to the Corporation and not to the assessee, which only acts as collecting agent for collection of the said interest or the amounts to make them over to the Corporation, The charge under the Interest-tax Act is on the chargeable interest which is defined in Section 5 of the Act as meaning the total amount of interest accruing or arising to the credit of the institution. Since the amount in dispute is not interest received by the assesses, but interest which accrued to the Corporation and which is only liable to be collected by the assessee, the amount in question is not liable to be assessed on the assessee as interest under the Interest-tax Act, 1974. There is no dispute about the facts as found by the Calcutta Bench of the Tribunal as extracted in the order of the Appellate Tribunal. In the light of those facts no other conclusion is possible. No purpose will be served by referring the question of law raised for the opinion of this court.
2. These petitions are, therefore, dismissed.