TaxTMI 
TaxTMI 
1983 (9) TMI 150
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....s. 27,690. The ITO had allowed this claim as put forward by the assessee. 2. The assessee went in appeal to the AAC on some other grounds which were disposed of by his appellate order in question. While doing so, he noticed that the said truck had been purchased by the assessee on hire-purchase basis from Tata Engineering & Locomotive Co. Ltd., Bombay. As per the copy of hire-purchase agreement d....
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.... 58 ITR 95 (AP), it has been held that it is the possession of the vehicle under the hire-purchase agreement that would entitle the person holding to development rebate under section 10(2)(vi) of the Indian Income-tax Act, 1922. The assessee's contention also derives support from a decision of the Hon'ble Supreme Court in K.M. Viswanatha Pillai v. K.M. Shanmugham Pillai AIR 1969 SC 493. Reference ....
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....ated 23-3-1943 wherein the following relevant instruction is given : "(iii) Where the terms of the agreement provide that the equipment shall eventually become the property of the hirer or confer on the hirer an option to purchase the equipment, the transaction should be regarded as one of hire-purchase. In such cases the periodical payments made by the hirer should for tax purposes be regarded a....