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 8TH JUNE 2009 / 18TH JYAISHTA 1931 ITA.No. 96 of 2009() -------------------- ITA.785/COCH/2005 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT:APPELLANT: -------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- EASTERN CONDIMENTS (P) LTD., EASTERN VALLEY, ADIMALI. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 08/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & C.K. ABDUL REHIM, JJ. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I.T.A. Nos. 96 OF 2009 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 8th day of June, 2009 JUDGMENT Ramachandran Nair,J. Heard standing counsel appearing for the appellant. The question raised in the appeal filed by the Revenue is whether two items of deposit made by the assessee before TNEB are expenditure of revenue nature or whether they are capital not eligible for deduction. The total amount involved is Rs. 1,10,000/- out of which Rs. 60,000/- is Earnest Money Deposit, which obviously is refundable to the assessee in the course of time. The balance amount of Rs. 50,000/- is stated as development charges which is probably not refundable as it is a reimbursement claimed by the TNEB. We do not think we should interfere with the finding of the Tribunal in appeal because Rs. 50,000/- was rightly allowed and balance Rs. 60,000/- being refundable is assessable under Section 41(1) of the I.T. Act when refund is received. We therefore dismiss the appeal filed by the revenue. (C.N.RAMACHANDRAN NAIR) Judge. (C.K. ABDUL REHIM) Judge.