K.k.denesan v. Ramkumar, Jj

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN THURSDAY, THE 12TH MARCH 2009 / 21ST PHALGUNA 1930 ITA.No. 112 of 2008() --------------------- TA.01/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT:- ----------------------------------------- THE COMMISSIONER OF INCOEM TAX, THIRUVANANTHAPURAM. BY ADVS. MR.P.K.RAVINDRANATHA MENON, MR.GEORGE K.GEORGE. RESPONDENT(S): RESPONDENT: --------------------------------------------------- KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION, THIRUVANANTHAPURAM. THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 12/03/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. ------------------------------------------------------------------------------------ I.T. Appeal NO: 112 OF 2008 ----------------------------------------------------------------------------------- Dated this the 12[th] March, 2009. JUDGMENT RAMACHANDRAN NAIR, J. The question raised in the appeal filed by the revenue iswhether interest tax is payable on interest received on bankdeposits maintained by the respondent/assessee. The respondentis a Government of Kerala undertaking engaged in development ofindustries including industrial financing. However, the amountinvolved in this case is interest received by them on depositsmaintained in the banks. Since interest tax is payable on intereston loans and advances obviously tax is not attracted on interestreceived on deposit maintained in banks as deposits are not in thenature of advance on loans made by the respondent to the banks.Consequently answer to the question raised is self-evident andtherefore, we find no ground to interfere with the order of the Tribunal. Appeal is accordingly dismissed. C.N. RAMACHANDRAN NAIRJudge K. SURENDRA MOHANJudge jj K.K.DENESAN & V. RAMKUMAR, JJ. ---------------------------------------------------- M.F.A.NO: ----------------------------------------------------- JUDGMENT Dated: