IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN THURSDAY, THE 10TH SEPTEMBER 2009 / 19TH BHADRA 1931 ITA.No. 1459 of 2009() ---------------------- ITA.222/COCH/1998 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: ------------------------------ THE COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT: -------------------------- KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED, THIRUVANANTHAPURAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 10/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & V.K. MOHANAN, JJ. -------------------------------------------- I.T.A. No. 1459 OF 2009 -------------------------------------------- Dated this the 10th day of September, 2009 JUDGMENT Ramachandran Nair, J. The question raised is whether the assessee is entitled to deduction of interest paid on interest tax as an allowable deduction in the computation of business income. We do not think that interest payable for belated payment of interest tax is a penalty warranting disallowance under the proviso to Section 37(1) of the Act. Consequently the order of the Tribunal is confirmed and the appeal by the revenue is dismissed. (C.N.RAMACHANDRAN NAIR) Judge. (V.K. MOHANAN) Judge. kk 2