The Commissioner of Income Tax and The Deputy Commissioner of Income Tax vs S. Airyata Finance Ltd.

N.K. Patil, J.—This appeal is arising out of the common impugned order dated 2.5.2005 passed in Interest Tax Appeal Ko.26/Bang/2003 on the file of the Income Tax Appellate Tribunal, Bangalore Bench ''A'' (for short ''the ITAT'') to consider the following substantial questions of law:

i. Whether the Appellate Authorities were correct in holding that the assessee had entered into only a hire purchase transaction with third parties and therefore no interest was received by the assessee in order to attract Interest Tax Provisions?

ii. Whether the Appellate Authorities were correct in holding that the Interest Tax Act was not applicable without properly appreciating; the Judgment of the Apex Court in AIR 1996 SC 1178?

iii. Whether the Appellate Authorities were correct in not taking into consideration that the vehicles financed by the assessee stood registered in the name of third parties and in the event of default of instalments the same would be transferred to the assessee and in respect of the advance paid assessee would be entitled to interest as could be seen from the agreement and consequently recorded a perverse finding?

iv. Whether the Appellate Authorities should have taken into consideration the definition prescribed u/s 5A and 5B Clause (i) of the Interest Tax Act which clearly contemplated business of hire purchase transaction or the financing of such transactions would also deemed to be finance companies like that of the assessee and therefore the amounts received would amount to interest liable to tax under the Interest Tax Act?

2, We have heard learned Counsel appearing for the appellants and learned Counsel for the respondent,

During the course of submission, the learned Counsel appearing for both the parties fairly submitted that, the subject matter involved in this case is covered ay the Judgment passed by the Division Bench of this Court dated 24.5.2010 in ITA Nos. 3084/2005 and 3083/2005 (The Commissioner of Income Tax v. Aikyata Finance Ltd.). Therefore, they submitted that, following the said judgment, the instant appeal may also be disposed of.

The above submission made by learned Counsel for both parties is placed on record.

The instant appeal filed by the appellants is disposed of following the judgment passed by the Division Bench of this Court dated 24.5.2010 in ITA Nos. 3084/2005 and 3085/2005 (The Commissioner of Income Tax v. Aikyata Finance Ltd.), and for the reasons stated therein.