IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN FRIDAY, THE 18TH SEPTEMBER 2009 / 27TH BHADRA 1931 ITA.No. 688 of 2009() --------------------- ITA.118/2003 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: -------------------- M/S. HINDUSTAN TEXTILES, ARAMKOTTAM, KANNUR, REP. BY ITS PARTNER K.P.BALAKRISHNAN. BY ADV. SMT.S.K.DEVI SRI.M.RAJ MOHAN SRI.SANTHOSH P.ABRAHAM SRI.K.P.PRADEEP (PAYYANNUR) SRI.SHANMUGHAM D. JAYAN SMT.P.K.MAYA DEVI RESPONDENT/RESPONDENT: --------------- THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE I(I), KANNUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 18/09/2009, ALONG WITH ITA NO.690 OF 2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. .................................................................... I.T. Appeal Nos.688 & 690 of 2009 .................................................................... Dated this the 18th day of September, 2009. JUDGMENT Ramachandran Nair, J. Heard counsel appearing for the appellant. The question whether interest income should be treated as business income for the purpose of computation of eligible relief under Section 80 HHC of the Income Tax Act stands decided against the assessee vide decision in COMMISSIONER OF INCOME-TAX V. JOSE THOMAS (2002) 253 ITR 553. In fact, the Tribunal has decided the matter following the said judgment. Before us counsel for the appellant contended that the facts are different in as much as in the decided case surplus income is deposited, whereas in assessee's case deposit is retained for availing credit facility from the Bank. We do not think the nature of deposit makes any difference because whatever is the interest received by a business concern other than in the course of financing cannot be treated as business income. So much so, the distinction drawn by the counsel cannot be accepted. We do not find any ground to deviate from the 2 decision already taken in the case referred above and relied on by the Tribunal. Consequently appeals are dismissed. C.N.RAMACHANDRAN NAIR Judge V.K.MOHANAN Judge pms