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2012 (7) TMI 590 - HC - Income TaxDifference in method of accounting adopted - EMI method to account the finance charges for the income tax purposes and SOD Method to arrive at balance sheet and profit and loss statements - hire purchase agreement - Held that:- Method employed for arriving the monthly installment is an EMI method and the right of the assessee to receive the hire purchase charges on various due dates are as per the schedule mentioned in the agreement - considering the character of the transaction as the title to the property will pass on to the hirer, when all the installments are paid and when the hire purchaser exercises his option to purchase was pure and simple and that the transaction had not in any manner undergone any change ever since the assessee started its business in this field the Tribunal came to the conclusion that the AO had committed a serious error in ignoring the EMI method, to adopt SOD method - once the Revenue had accepted the character of the transaction as hire purchase transaction and when the Revenue had not disputed the fact that on all the earlier years there are no materials available as on record to show that following such method had really resulted in suppression of income - in favour of assessee.
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