TMI Blog1983 (9) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... as put forward by the assessee. 2. The assessee went in appeal to the AAC on some other grounds which were disposed of by his appellate order in question. While doing so, he noticed that the said truck had been purchased by the assessee on hire-purchase basis from Tata Engineering Locomotive Co. Ltd., Bombay. As per the copy of hire-purchase agreement dated 11-6-1974, the assessee was only th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is the possession of the vehicle under the hire-purchase agreement that would entitle the person holding to development rebate under section 10(2)(vi) of the Indian Income-tax Act, 1922. The assessee's contention also derives support from a decision of the Hon'ble Supreme Court in K.M. Viswanatha Pillai v. K.M. Shanmugham Pillai AIR 1969 SC 493. Reference may also be made to the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant instruction is given : "(iii) Where the terms of the agreement provide that the equipment shall eventually become the property of the hirer or confer on the hirer an option to purchase the equipment, the transaction should be regarded as one of hire-purchase. In such cases the periodical payments made by the hirer should for tax purposes be regarded as made up of--- (i) consideration fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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