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 FRIDAY, THE 21ST AUGUST 2009 / 30TH SRAVANA 1931 ITA.No. 1488 of 2009() ---------------------- ITA.01/COCH/2005 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): --------------- KERALA FINANCIAL CORPORATION THIRUVANANTHAPURAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 21/08/2009, ALONG WITH ITA NO. 1495 OF 2009 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & C. K. ABDUL REHIM, JJ. -------------------------------------------- I.T.A. No.1488 &1495 OF 2009 -------------------------------------------- Dated this the 21st day of August, 2009 JUDGMENT Ramachandran Nair, J. The question raised is whether interest on Bank deposits attracts interest tax under the Interest Tax Act. Since the Bank deposits are not loan or advance made by the respondent, the Tribunal rightly rejected the department's claim to tax interest on the interest income from such deposits under the Interest Tax Act. We therefore dismiss these appeals. (C.N.RAMACHANDRAN NAIR) Judge. (C. K. ABDUL REHIM) Judge. kk 2