https://www.taxtmi.com/caselaws?id=261095 Hire charges received under a genuine hire-purchase agreement were not interest on loans and advances for purposes of the Interest Tax Act. A true hire-purchase arrangement is a composite transaction in which ownership remains with the owner until the option to purchase is exercised, and the hirer is under no legal obligation to buy; the Court held that nomenclature, book entries, and accounting treatment are not decisive. The Tribunal had erred in treating the arrangement as a financing transaction by overlooking the legal distinction between hire-purchase and a loan, so the receipts were not liable to interest tax. en-us Mon, 30 Mar 2015 00:00:00 +0530 Sat, 07 Nov 2015 12:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=261095 Hire charges received under a genuine hire-purchase agreement were not interest on loans and advances for purposes of the Interest Tax Act. A true hire-purchase arrangement is a composite transaction in which ownership remains with the owner until the option to purchase is exercised, and the hirer is under no legal obligation to buy; the Court held that nomenclature, book entries, and accounting treatment are not decisive. The Tribunal had erred in treating the arrangement as a financing transaction by overlooking the legal distinction between hire-purchase and a loan, so the receipts were not liable to interest tax. Case-Laws Income Tax Mon, 30 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=261095