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2014 (1) TMI 1590 - HC - Income TaxInterest-tax Act, 1974 - Whether the transaction entered into by the assessee was a loan transaction - Held that:- - Unless there is involvement of loan transaction, the question of payment of interest does not arise - The owner under the hire purchase agreement enters into a transaction of hiring out goods on the terms and conditions - In some hire purchase agreement there is no agreement to buy goods - The hirer being under no legal obligation to buy, has an option either to return the goods or to become its owner by payment in full of the stipulated hire and the price for exercising the option - This class of hire purchase agreement must be distinguished from transaction in which the customer is the owner of the goods and with a view to finance his purchase he enters into an arrangement which is in the form of a hire purchase agreement - Decided against Revenue.
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