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2015 (8) TMI 849 - HC - Income TaxLevy of interest tax - Finance charges received on purchase and hire back transactions - whether is in the nature of loan and hence chargeable to interest tax as held by ITAT - whether the real intention of parties in all cases of purchase and hire back transactions is only to obtain finance and not to hire the asset? - Held that:- We are unable to accept the contention of assessee that if the sale precedes the Hire Purchase Agreement, it would still fall within the definition of Sale and Hire Back Transaction. It is clear that transactions can be treated as hire purchase transactions only if there is bonafide and complete sale of goods, as evidenced by documents. But no agreements or documents have been produced before us for such verifications The later part of paragraph 4 of the circular No. 760 issued by the CBDT, which we extracted above would be applicable to the facts of the present case as we find that all the authorities have consistently held that there is no proof of actual sale though it is claimed as Sale and Hire Back transaction. As all these are findings of fact, we have no other option but to accept the department's plea and reject the assessee's contention. - Decided against assessee.
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