COMMISSIONER OF INCOME TAX Vs. KATARIA ROAD LINES

JUDGEMENT

(1.) THE Income -tax Appellate Tribunal, Jaipur Bench, Jaipur ('the Tribunal') has made reference for our answer to the following questions in D.B. Income -tax Reference No. 43/1989:

(2.) THE aforesaid questions have been referred for the same assessee on same set of facts. Thus, both the cases are taken up together for hearing and decided by this common order.

(3.) LEARNED Counsel for the revenue submits that it being hire -purchase agreement, title of the vehicle was not passed on to the assessee and thereby, the amount of finance commission, which was actually paid in the subsequent years cannot be claimed as the expenditure in the year when the hire -purchase agreement was entered, thus, the deduction towards finance commission cannot be taken entirely in the year of the hire -purchase agreement rather same has to spread in the years in which the aforesaid commission was actually paid by the assessee in instalments.