2005 (10) TMI 59

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1999, dated March 18, 2005, the Revenue has preferred the appeal and raised the following substantial questions of law: "(1) Whether, on the facts and circumstances of the case, the Tribunal was right in holding that hire purchase finance charges are not subject to interest-tax, without going into the nature of the financial transactions? (2) Whether, on the facts and circumstances of the case, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n the first question is covered against the Revenue by an unreported decision of this court in T.C. No. 73 of 2000 (CIT v. Harita Finance Ltd., since reported in [2006] 283 ITR 370) wherein a Division Bench of this court, by judgment dated February 1, 2005, held as under: "The point involved in the question is whether the agreement entered into between the parties was a hire purchase agreement or....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....was decided in favour of the assessee by this court as referred to above. Accordingly, in so far as the first question is concerned, following the unreported decision of this court in T.C. No. 73 of 2000, dated February 1, 2005-since reported in CIT v. Harita Finance Ltd. [2006] 283 ITR 370, we hold that the Appellate Tribunal was right in holding that hire purchase finance charges are not subjec....