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 THURSDAY, THE 27TH AUGUST 2009 / 5TH BHADRA 1931 ITA.No. 544 of 2009() --------------------- ITA.12/COCH//2005 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: -------------------- THE COMMISSIONER OF INCOEM TAX, TRICHUR. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- M/S VYAARAVIJAYAM TRADERS & AGENCIES(P) LTD., ADAM BAZAR, EASTERN BAZAR, TRICHUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 27/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. .................................................................... I.T. Appeal No.544 of 2009 .................................................................... Dated this the 27th day of August, 2009. JUDGMENT Ramachandran Nair, J. All the issues raised are covered by various judgments of this court, one in COMMISSIONER OF INCOME TAX V. KERALA STATE FINANCIAL ENTERPRISES LTD. reported in 220 CTR 286, and another vide judgment in I.T.A. No.57/2009. Following these two judgments we allow the departmental appeal by reversing the order of the Tribunal and that of the first appellate authority and remand the cases for recomputation of liability under the Interest Tax Act after issuing notice to the assessee and after serving a copy of this judgment. However, department's claim for assessment of interest received on Post Office Deposits under Indira Vikas Pathra and Kissan Vikas Pathra Schemes cannot be allowed because these are only deposits or 2 investments and not in the nature of loan or advance. Therefore, we dismiss the appeal on this question. The appeal is partly allowed as above. C.N.RAMACHANDRAN NAIR Judge C.K.ABDUL REHIM Judge pms