Ita/410/2009 Of The Commissioner Of Income-Tax v. M/S. Dharmaposhana Company

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 9TH JULY 2009 / 18TH ASHADHA 1931 ITA.No. 410 of 2009() --------------------- ITA.26/COCH//2005 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT ----------------------------- THE COMMISSIONER OF INCOME TAX, TRICHUR BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT: -------------------------- M/S.DHARMAPOSHANA COMPANY, IRINJALAKUDA, TRICHUR DISTRICT. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 09/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR &C.K.ABDUL REHIM, JJ. ....................................................................I.T. Appeal No.410 of 2009 ....................................................................Dated this the 9th day of July, 2009. JUDGMENT Ramachandran Nair, J. Questions raised pertain to department's claim for assessment ofinterest earned on Indira Vikas Pathra. The Interest Tax Act provides forlevy of interest tax on loans and advances. The investments made in thePost Office under the above schemes cannot be treated as loan or advancegiven by the assessee to the Government authority. We are, therefore, of theview that the Tribunal rightly rejected the department's appeal.Consequently we dismiss the appeal. C.N.RAMACHANDRAN NAIRJudge C.K.ABDUL REHIM Judge pms