2010 (5) TMI 469

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....red into only a hire, purchase transaction with third parties and therefore no interest was received by the Assessee in order to attract Interest Tax Provisions.  (II)  Whether the Appellate Authorities were correct in holding that the Interest Tax Act was not applicable without properly appreciating the judgment of the Apex Court in AIR 1966 SC 1178. (III) Whether the Appellate Authorities were correct in not taking into consideration that the vehicles financed by the Assessee stood registered in the name of third parties and in the event of default of instalments the same would be transferred to the Assessee and in respect of the advance paid Assessee would be entitled to interest as could be seen from the agreement and co....

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....issioner of Income-tax (Appeals) in Proceedings No. Int. Tax Appeal Nos. 5 & 6/R-11/CIT(A)-I/2001-02 respectively. The said authority, in turn, allowed the appeals filed by the assessee. Assailing the correctness of the said order passed by the Commissioner of Income-tax (Appeals)-I, Bangalore, the Income-tax Officer, Ward 11(1), Bangalore, filed an appeal before the Income-tax Appellate Tribunal, Bangalore Bench 'A' ('Tribunal' for short). The said matter came up for consideration before the Tribunal and the Tribunal, in turn, by its impugned common order, dismissed the appeals, on the sole ground that hire charges/lease rentals are not to be treated as interest under the Act, as consistently held by the Bangalore Benches of the Tribunal i....

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....able in law ?" After perusal of the impugned common order passed by Tribunal, it is manifest on the face of the same that the Tribunal has dismissed the appeals filed by the Income-tax Officer, Ward 11(1), Bangalore, without going into the merits of the case and the grounds urged by the said authority. It has proceeded straightaway by following the decisions of the Bangalore Bench of the Tribunal in ICDS Ltd.'s case (supra) and the decision of ITAT, Madras in the case of Haritha Finance Ltd. (supra). But, it is pertinent to note that, the view taken by the Tribunal in the case of ICDS Ltd. (supra) has been set aside by the Division Bench of this Court in ICDS Ltd.'s case (supra). 6. Therefore, without going into further merits and dem....