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 TUESDAY, THE 18TH AUGUST 2009 / 27TH SRAVANA 1931 ITA.No. 1309 of 2009() ---------------------- ITA.88/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: --------------------------- THE COMMISSIONER OF INCOME TAX, TRICHUR. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT: -------------------------- M/S.RIGHT LEASING & HIRE PURCHASE CO. (P) LTD., RICE BAZAR, TRICHUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 18/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. ---------------------------------- I.T.A. No.1309 of 2009 ---------------------------------- Dated this the 18th day of August, 2009 J U D G M E N T ---------------------- Ramachandran Nair,J. The question pertaining to Interest Tax liability on hire charges and finance charges is covered by judgment of this Court reported in Commissioner of Income Tax Vs. Kerala State Financial Enterprise and others (220 CTR 286). So far as default interest is concerned we have held vide our judgment in ITA.57/2009 that the same is an addition to the interest. However, interest received from post office deposits under the Kisan Vikas Pathra and the Indira Vikas Pathra will not attract interest tax is our finding in a batch cases. Consequently we allow the appeal in part by setting aside the order of the Tribunal and that of the CIT (Appeals) with direction to the Assessing Officer to re-compute liability under the Interest Tax Act on hire charges, finance charges and on default interest based on the decision above referred after issuing notice to the assessee and after serving a copy of this judgment on the assessee. The appeal is disposed of as above. C.N.RAMACHANDRAN NAIR, JUDGE. C.K.ABDUL REHIM, JUDGE. okb