https://www.taxtmi.com/caselaws?id=62006 Hire purchase finance charges are not automatically "interest" under the Interest-tax Act, 1974. The real nature of the arrangement must be examined, and where the assessee purchases the asset, retains ownership until instalments are completed, and the hirer merely has possession with an option to acquire title, the receipts are referable to a genuine hire purchase transaction rather than a loan or advance. On those facts, the charges fall outside the statutory concept of interest, and tax additions on that basis are unsustainable. en-us Thu, 28 Feb 2002 00:00:00 +0530 Mon, 17 Jan 2011 16:20:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62006 Hire purchase finance charges are not automatically "interest" under the Interest-tax Act, 1974. The real nature of the arrangement must be examined, and where the assessee purchases the asset, retains ownership until instalments are completed, and the hirer merely has possession with an option to acquire title, the receipts are referable to a genuine hire purchase transaction rather than a loan or advance. On those facts, the charges fall outside the statutory concept of interest, and tax additions on that basis are unsustainable. Case-Laws Income Tax Thu, 28 Feb 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62006