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. 619 of 2009() --------------------- ITA.35/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT(S): 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: -------------------------------- BLAZE KURIES & LOANS (P) LTD., IRINJALAKUDA. 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. 619 of 2009 ------------------------------------ Dated this the 29th day of July, 2009 J U D G M E N T ---------------------- Ramachandran Nair,J. The question raised is whether assessee is liable to pay interest tax on receipts of interests from Indira Vikas Pathra, Kissan Vikas Pathra, interest on deposits in companies and mutual funds. Interest Tax Act provides for levy of tax on interest received on loans or advances. The above deposits are in the nature of investments and not by way of loans or advances made by the assessee. Consequently the Tribunal rightly rejected the departmental appeal against the order of the CIT (Appeals) who held that interest received by assessee does not attract liability under the Act. We therefore dismiss the appeal filed by the Revenue. C.N.RAMACHANDRAN NAIR, JUDGE. C.K.ABDUL REHIM, JUDGE. okb