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Ita/1459/2009 Of The Commissioner Of Income Tax,Tvm v. M/S.kerala State Industrial Dev.corpn.lt

High Court 10 Sep 2009 In favour of: Assessee

Forum / Bench

High Court · highcourtofkerala

Parties

Date of order

10 Sep 2009

Assessment year(s)

—

Outcome

Dismissed

Case summary

In Ita/1459/2009 Of The Commissioner Of Income Tax,Tvm v. M/S.kerala State Industrial Dev.corpn.lt, the High Court (2009) dismissed the appeal. The decision went in favour of the assessee.

Issue: The question raised is whether the assessee is entitled todeduction of interest paid on interest tax as an allowable deduction inthe computation of business income.

Decision: We do not think that interestpayable for belated payment of interest tax is a penalty warrantingdisallowance under the proviso to Section 37(1) of the Act.Consequently the order of the Tribunal is confirmed and the appeal bythe revenue is dismissed.

Summary auto-generated from the order below — read the full judgment for the complete reasoning.

Sections referenced in this judgment

Section 37 case law →

The order — as passed by the High Court

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN THURSDAY, THE 10TH SEPTEMBER 2009 / 19TH BHADRA 1931 ITA.No. 1459 of 2009() ---------------------- ITA.222/COCH/1998 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: ------------------------------ THE COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT: -------------------------- KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED, THIRUVANANTHAPURAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 10/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR &V.K. MOHANAN, JJ. -------------------------------------------- I.T.A. No. 1459 OF 2009 -------------------------------------------- Dated this the 10th day of September, 2009 JUDGMENT Ramachandran Nair, J. The question raised is whether the assessee is entitled todeduction of interest paid on interest tax as an allowable deduction inthe computation of business income. We do not think that interestpayable for belated payment of interest tax is a penalty warrantingdisallowance under the proviso to Section 37(1) of the Act.Consequently the order of the Tribunal is confirmed and the appeal bythe revenue is dismissed. (C.N.RAMACHANDRAN NAIR)Judge. (V.K. MOHANAN) Judge. kk

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