https://www.taxtmi.com/caselaws?id=257960 In a genuine hire purchase arrangement, hire purchase finance charges are to be assessed for tax on the Equated Monthly Instalment method where that method has been consistently accepted for tax purposes. The court held that the revenue's acceptance of the contractual character of the transaction and the absence of any material showing suppression of income or a failure to reflect true income justified continuation of the EMI basis. The fact that the books of account reflected a different method did not, by itself, require a different tax treatment when the agreement and past practice supported EMI recognition. The Sum of Digits basis was therefore rejected and the assessee's method upheld. en-us Tue, 17 Mar 2015 00:00:00 +0530 Wed, 12 Aug 2015 16:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=257960 In a genuine hire purchase arrangement, hire purchase finance charges are to be assessed for tax on the Equated Monthly Instalment method where that method has been consistently accepted for tax purposes. The court held that the revenue's acceptance of the contractual character of the transaction and the absence of any material showing suppression of income or a failure to reflect true income justified continuation of the EMI basis. The fact that the books of account reflected a different method did not, by itself, require a different tax treatment when the agreement and past practice supported EMI recognition. The Sum of Digits basis was therefore rejected and the assessee's method upheld. Case-Laws Income Tax Tue, 17 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=257960