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 MONDAY, THE 3RD AUGUST 2009 / 12TH SRAVANA 1931 ITA.No. 847 of 2009() --------------------- AGAINST THE JUDGEMENT/ORDER IN INT. TA.25/COCH/2005 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): RESPONDENT: -------------------------- M/S.SUBITHA LEASING COMPANY LTD., KOMATH BUILDING, M.O.ROAD, KUNNAMKULAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 03/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. .................................................................... I.T. Appeal No.847 of 2009 .................................................................... Dated this the 3rd day of August, 2009. JUDGMENT Ramachandran Nair, J. While interest received under hire purchase agreement, whether called interest charges or finance charges, is assessable to interest tax under the Interest Tax Act vide judgment of this court in COMMISSIONER OF INCOME TAX V. KERALA STATE FINANCIAL ENTERPRIESES LTD. (220 CTR 286), department's claim for assessment of investment income on investments like bonds, securities etc. is not tenable. Therefore, we allow the appeal only in part by setting aside the order of the Tribunal and that of the first appellate authority and remand the matter to the Assessing Officer for 2 redoing assessment based on judgment abovereferred, but after excluding interest received on securities and from bonds. C.N.RAMACHANDRAN NAIR Judge C.K.ABDUL REHIM Judge pms