https://www.taxtmi.com/caselaws?id=69104 Hire purchase finance charges were required to be recognised for income-tax purposes under the terms of the agreements and the real income principle, because the arrangements were genuine hire purchase contracts and not loan transactions. Section 145 governed only the method of computation and could not expand the charge to tax, while section 5 required accrual to be determined by the contractual structure. CBDT circulars on hire purchase were treated as binding on the tax authorities and supported the view that such hire charges were not interest. The finance charges therefore accrued evenly over the instalment period and were taxable on the equated monthly instalment basis, so the addition was deleted. en-us Fri, 27 Jul 2001 00:00:00 +0530 Tue, 05 Apr 2011 12:06:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69104 Hire purchase finance charges were required to be recognised for income-tax purposes under the terms of the agreements and the real income principle, because the arrangements were genuine hire purchase contracts and not loan transactions. Section 145 governed only the method of computation and could not expand the charge to tax, while section 5 required accrual to be determined by the contractual structure. CBDT circulars on hire purchase were treated as binding on the tax authorities and supported the view that such hire charges were not interest. The finance charges therefore accrued evenly over the instalment period and were taxable on the equated monthly instalment basis, so the addition was deleted. Case-Laws Income Tax Fri, 27 Jul 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69104