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 13th 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. Facts: In present facts of the case, the common question which arises for consideration in this matter was whether the appellants – assessees are lia...