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 9TH JULY 2009 / 18TH ASHADHA 1931 ITA.No. 398 of 2009() --------------------- ITA.10/COCH/2005 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.VYAPARAVIJAYAM TRADERS & AGENCIES(P) LTD., ADAM BAZAR, EASTERN BAZAR, TRICHUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 09/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. .................................................................... I.T. Appeal No.398 of 2009 .................................................................... Dated this the 9th day of July, 2009. JUDGMENT Ramachandran Nair, J. Of the four questions raised by the Revenue in the appeal filed by them, first three are covered by our decision in COMMISSIONER OF INCOME-TAX V. KERALA STATE FINANCIAL ENTERPRISES LTD. reported in 220 CTR 286. Following the said judgment, we allow the appeal by reversing the orders of the Tribunal and that of the first appellate authority with direction to the Assessing Officer to compute tax on interest received on hire charges and finance charges based on the abovereferred judgment after issuing notice to the assessee and after giving an opportunity to the assessee. 2. So far as the last question is concerned, we do not think investment in Kisan Vikas Patra is a loan or advance that attracts provisions of the Interest Tax Act. Consequently this issue is decided against the Revenue. The appeal is disposed of without issuing notice to the assessee only 2 to avoid further expenditure for them. However, the Assessing Officer will issue a copy of the judgment to the assessee before initiating proceedings for revision of assessment in terms of the judgment. C.N.RAMACHANDRAN NAIR Judge C.K.ABDUL REHIM Judge pms