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2016 (5) TMI 921 - AT - Income TaxLiability to pay interest tax as per the Interest Tax Act - Held that:- Applying the principles for determining the nature of the transaction enunciated above to the facts of the case, we unhesitatingly hold that the transaction entered into by the assessee constituted a hire purchase transaction wherein the assessee being the owner of goods had hired the same to the customers/ hirers for specified hire charges, and gave the right to exercise the option of purchasing the asset on payment of the entire hire charges. The Registration Certificate of the vehicle also lend credence to this view wherein the hirers have been shown as owners under hire purchase agreement entered into with the assessee. The Revenue’s case we find, rests entirely on the premise that the owner of the vehicles are the hirers and hence the transaction is a financing transaction. We find no merit in this argument of the Ld. DR as there is no basis for the same which is is evident from the order of the Ld. CIT(A) wherein he has categorically stated that no purchase bills of the vehicle were produced. The argument of the Ld. DR that the AR of the assessee had admitted that the vehicle were purchased by the hirer is rebutted by the Hire Purchase agreement, which clearly states the assessee to be the owner of the goods. In the absence of any purchase bills to establish the ownership of the vehicle, the Hire Purchase agreement will override the oral statement of the Counsel of the assessee. Ld. DR has also stated that the vehicle were registered in the name of the hirer which prove that the hirer were the owner of the vehicle. We find that this argument also has no substance since the Registration Certificate clearly mentions the hirers as owners under hire purchase agreement with the assessee. Thus there is no basis to hold that the assessee was the owner of the assets. We therefore hold that the transactions entered into by the assessee were hire purchase transactions and were not amenable to Interest Tax. The order of the Ld. CIT(A) is therefore set aside and the appeal of the assessee is allowed deleting the levy of Interest Tax - Decided in favour of assessee
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