Ramachandran Nair,J v. Ita.706/09

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 WEDNESDAY, THE 29TH JULY 2009 / 7TH SRAVANA 1931 ITA.No. 706 of 2009() --------------------- ITA.89/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/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. VYAPARAVIJAYAM HIRE PURCHASE (P) LTD., TRICHUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 29/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. ----------------------------------- I.T.A. No. 706 of 2009 -------------------------------------- Dated this the 29[th] day of July, 2009 J U D G M E N T---------------------- Ramachandran Nair,J. The questions raised pertaining to assessee's liability fortax under the Interest Tax Act, on interest component of hirecharges and on default interest thereon are covered by twojudgments of Division Bench of this Court, one reported inCommissioner of Income Tax Vs. Kerala State FinancialEnterprise and others (220 CTR 286), and the other inI.T.A.57 of 2004. So far as the interest from Indira VikasPathra and Kissan Vikas Pathra is concerned, the same isinterest on deposit with Post Office under various schemes andtherefore Tribunal rightly allowed the claim of the assessee.However, in view of the judgments of this Court above referredwe allow the appeal in part by setting aside the order of theTribunal and first appellate authority and remand the case backto the Assessing Officer for determination of liability underInterest Tax Act on interest received on hire charges and ondefault interest charged thereon, after giving an opportunity ofhearing to the assessee and after serving a copy of this judgment on the assessee. The appeal is partly allowed as stated above. C.N.RAMACHANDRAN NAIR, JUDGE. okb C.K.ABDUL REHIM, JUDGE.