Receipts of Hire Charges in hire-purchase transactions would not attract Interest Tax Act, 1974: SC

Muthoot Leasing And Finance Limited Vs CIT (Supreme Court of India)

Conclusion: The Hon’ble Supreme Court observed while allowing the appeal that as per Circular No. 760 dated 13^th January 1998, the CBDT have stated that in case of transactions which are, in substance, in the nature of hire-purchase, the receipts of hire charges would not be in the nature of interest and hence assessee were liable to pay interest under Interest-Tax Act, 1974.

Please become a Premium member. If you are already a Premium member, login here to access the full content.