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2013 (12) TMI 848 - HC - Income TaxLevy of interest tax on interest under Interest Tax Act, 1974 - Nature of finance charges as well as interest received - whether ITAT was legally justified in holding that hire purchase transactions of the assessee were not loan transactions - Held that:- TAT has failed to examine the agreement in totality and the documents to discover the real nature of the transaction which was emphasised by the CBDT vide Circular No. 760 and also by Hon'ble Supreme Court in the case of Sundaram Finance Ltd.(1965 (11) TMI 123 - SUPREME COURT OF INDIA) - the transactins entered by the respondent assessee with the customer/hirer is a loan transaction and the finance charges were nothing but interest. - Decided against the assessee. Reassessment proceedings - Held that:- Particular company or firm receive notices and make their signatures endorsing the receipt and the Department officials do not enquire about their authority or power of attorney. What is relevant is the conduct of the assessee in acquiescing in such practice. If the assessee continues to give impression that such official or employees are duly and regularly representing it, then the Departemntal Officials are bond to be led or misled by such conduct. This representation of the assessee is further found to be supported by the conduct of the assessee in making compliance of the notice on the basis of such receipt. In the present case, it is established on record that the assessee had filed return in compliance to the notice, which was received on its behalf by is employees. Not only this, the assessee continued to be represented during assessment proceedings and never raised any objection on this count. - Decided against the assessee.
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