https://www.taxtmi.com/caselaws?id=175386 Finance charges collected under vehicle financing arrangements styled as hire purchase agreements were treated as interest where the substance of the transaction was a loan for purchase rather than a genuine hire purchase. The vehicles stood in the borrowers' names, the financiers retained only a repossession right on default, and the charges were loaded on the financed sum at a flat annual rate and recovered in instalments. Applying the substance-over-form principle, the Court held that such charges were interest on loans and advances taxable under the Interest-tax Act, 1974. The Tribunal's reliance on an option clause and the Hire Purchase Act, 1972 was rejected, and the assessments were restored. en-us Mon, 10 Mar 2008 00:00:00 +0530 Thu, 19 Nov 2015 16:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=175386 Finance charges collected under vehicle financing arrangements styled as hire purchase agreements were treated as interest where the substance of the transaction was a loan for purchase rather than a genuine hire purchase. The vehicles stood in the borrowers' names, the financiers retained only a repossession right on default, and the charges were loaded on the financed sum at a flat annual rate and recovered in instalments. Applying the substance-over-form principle, the Court held that such charges were interest on loans and advances taxable under the Interest-tax Act, 1974. The Tribunal's reliance on an option clause and the Hire Purchase Act, 1972 was rejected, and the assessments were restored. Case-Laws Income Tax Mon, 10 Mar 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=175386