IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN MONDAY, THE 6TH APRIL 2009 / 16TH CHAITHRA 1931 ITA.No. 74 of 2009() -------------------- ITA.7/COCH/2000 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: -------------------- THE COMMISSIONER OF INCOME TAX, TRICHUR. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- THE KERALA STATE FINANCIAL ENTERPRISES LTD., TRICHUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 06/04/2009, ALONG WITH ITA NO. 75 & 76/2009 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & K. SURENDRA MOHAN, JJ. -------------------------------------------- I.T.A. Nos. 74, 75 & 76 OF 2009 -------------------------------------------- Dated this the 6th day of April, 2009 JUDGMENT Ramachandran Nair,J. Since the main issue raised that is respondent's liability for interest tax on hire charges and finance charges, is covered by the decision of this Court reported in COMMISSIONER OF INCOME TAX V. KERALA STATE FINANCIAL ENTERPRISES LTD., 220 C.T.R. 286, we allow the appeals by reversing the order of the Tribunal on this issue, following the said judgment and restore the assessment. Consequently question Nos. 1,2,3 and 5 in I.T.A.Nos. 74 & 75 of 2009 and question Nos. 1 to 4 in I.T.A. No. 76 of 2009 will stand answered in favour of appellants. So far as question Nos. 4 and 6 in I.T.A.Nos. 74 & 75 of 2009 are concerned, we have, in another connected case of the same assessee, decided the issue in favour of the assessee vide judgment in I.T.A.No. 57 of 2009 dated 23.3.2009. Following the said judgment the Tribunal's orders on this issue are confirmed. We find from the order of the Tribunal that interest recovered from SILK is for 2 the amount advanced for construction of building. Interest received is outside the scope of the Interest Tax Act. Therefore we reject I.T.A.Nos. 74 and 75 of 2009 on this issue. So far as interest recovered on bridge loan is concerned, since the amount involved is insignificant we decline to consider the appeals on this issue. The last issue namely question No. 8 in I.T.A.No. 74 of 2009 pertains to default interest on RR dues. On going through the Tribunal's order we do not find any discussion or decision by the Tribunal on this issue. Since the issue does not arise from the order of the Tribunal, we decline to consider this question. Appeals are disposed of as above. Since we have disposed of the appeals without issuing notice to the respondent-assessee, Registry will forward a copy of this common judgment to the respondent for information. (C.N.RAMACHANDRAN NAIR) Judge. (K. SURENDRA MOHAN) Judge. kk 3