Hire-Purchase – In absence of bifurcation of EMIs into principal & interest indexing system of accounting is valid

HIGH COURT OF ANDHRA PRADESH Chakra Financial Services Ltd. versus Commissioner of Income-tax I.T.T.A. No. 10 of 2000 FEBRUARY 7, 2012 JUDGMENT Sanjay Kumar, J. The issue for consideration in this assessee’s appeal under section 260A of the Income-tax Act, 1961 (hereinafter, “the Act”) is as to the methodology of computation of the assessee’s income from finance charges. 2. The assessee is a public limited company engaged in the business of leasing, hire-purchase and finance. For the assessment year 1987-88, it admitted a loss of Rs. 7,09,738. The Assis...