Supreme Court of India

M/s. Muthoot Leasing and Finance Limited and Another v. Commissioner of Income Tax

Neutral citation
Bench Sanjiv Khanna and M. M. Sundresh JJ.
Decided 3 January 2023

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

From the headnote

Interest Tax Act,1974 – s.2(5- ) and s.2(5- ) – Hire-purchase agreements – Appellants-assessees are credit institutions within meaning of s.2(5- ) – Whether appellants-assessees liable to pay tax on interest component included in hire-purchase instalments paid under hire-purchase agreements – ITAT referred to CBDT Circular No. 760 dated 13th January 1998 and observed that hire-purchase agreement is a composite transaction, and has elements of bailment and sale and appellants-assessees are not liable to pay interest tax as hire instalments are not interest on loans and advances that is…

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