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 WEDNESDAY, THE 29TH JULY 2009 / 7TH SRAVANA 1931 ITA.No. 714 of 2009() --------------------- AGAINST THE JUDGEMENT/ORDER IN ZITA.1434/2009 ITA.3/COCH/2006 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: -------------------------- THE COMMISSIONER OF INCOME TAX, TRICHUR. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT ------------------------- M/S.KALLUR CHITS & FINANCE (P) LTD., KALLUR, TRICHUR DISTRICT. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 29/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. ----------------------------------- I.T.A. No.714 of 2009 -------------------------------------- Dated this the 29th day of July, 2009 J U D G M E N T ---------------------- Ramachandran Nair,J. The first question raised that is liability under the Interest Tax Act on the interest component of hire charges received is concerned, it is decided by this Court against the assessee in the judgment reported in Commissioner of Income Tax Vs. Kerala State Financial Enterprise and others (220 CTR 286). Following the said judgment we allow the appeal by setting aside the order of the Tribunal and first appellate authority and remand the case back to the Assessing Officer for computation of liability in accordance with the judgment above referred after giving an opportunity to the assessee and after serving a copy of this judgment on the assessee. So far as the next question, that is liability under Interest Tax Act on the interest received in defaulted kuries, is concerned, the issue stands decided against the Revenue by our judgment in ITA.175 of 2009. Following the said judgment we reject the departmental appeal on this issue. The appeal is partly allowed as above. C.N.RAMACHANDRAN NAIR, JUDGE. C.K.ABDUL REHIM, JUDGE. okb