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. 399 of 2009() --------------------- ITA.39/COCH/2005 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPEALLANT: -------------------- 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): --------------- M/S IRINJALAKUDA KURIES & FINANCIERS PVT LTD., IRINJALAKUDA. 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.399 of 2009 .................................................................... Dated this the 9th day of July, 2009. JUDGMENT Ramachandran Nair, J. Questions raised pertain to department's claim for assessment of interest earned on Kissan Vikas Pathra and Indira Vikas Pathra. The Interest Tax Act provides for levy of interest tax on loans and advances. The investments made in the Post Office under the above schemes cannot be treated as loan or advance given by the assessee to the Government authority. We are, therefore, of the view that the Tribunal rightly rejected the department's appeal. Consequently we dismiss the appeal. C.N.RAMACHANDRAN NAIR Judge C.K.ABDUL REHIM Judge pms