INDIA BUSINESS WORLD - JANUARY 1^st - JANUARY 15^th - 2008

SUPREME COURT ISSUES NOTICE TO GE CAPITAL ON I-T DEPARTMENT PLEA

The dispute between the revenue department and GE Capital Transport Finance Services on delayed payment of lease rental and hire purchase installments has landed in the Supreme Court. The revenue department feels that such payments are financial charges that form part of the chargeable interest under provisions of the Interest Tax Act. The company, on the other hand, feels this interpretation is not correct.

A bench headed by Justice SH Kapadia recently issued notices to GE Capital Transport Finance Services on the basis of an appeal filed by the department of revenue.