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TMI Blog2015 (2) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... t feature from all those transactions of financing on hire purchase and leasing that an exception has to be made in respect of the amount advanced by the assessee for the purpose of purchase of machinery. On the delay in delivery, the manufacturer had paid interest. As already pointed out, going by the fact - a fact which is not disputed by the Revenue, that the amount given by the assessee was towards the purchase of machinery as advance, we hold that the case of the assessee does not fall for consideration under sub-clause (iv) of Section 5(B). Going by the definition therein, we hold that the trade advance given does not fall under the phrase loan or advance or otherwise so as to cover the nature of transactions herein. - Decided in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the assessee's own case for the assessment year 1994-1995, allowed the appeal filed by the assessee. 2.4. Challenging the above said order passed by the Tribunal, the revenue has preferred this appeal on the question of law, referred supra. 3. We have heard Mr.T.Ravikumar, learned Senior Standing Counsel appearing for the revenue and Mr. Venkat Narayanan, learned counsel appearing for the assessee and perused the orders passed by the Tribunal and the authorities below. 4. The main contention of the learned counsel for the assessee, which has been accepted by the Tribunal, is as follows: The assessee had paid the advance amount to the manufacturer/dealer towards the purchase of machinery in connection wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or repayment of the amount given as advance, but towards the purchase of machinery. The Division Bench, on the facts of the said case, held as under: 19. Going by the facts, we hold that the assessee's case does not fall for consideration under sub-clause (iv) of Section 2(5B). The assessee is a credit institution. As a finance company engaged in hire purchase and leasing transaction, the assessee also does not deny that its activities in respect of financing, falls for consideration under sub clause (iv). The Assessing Officer has assessed the transactions relating to hire purchase financing. However, as rightly pointed out by the assessee, when the payment of money as advance was towards the purchase of machinery, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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