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. 706 of 2009() --------------------- ITA.89/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: ---------------------------- 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): RESPONDENT: ----------------------------------- M/S. VYAPARAVIJAYAM HIRE PURCHASE (P) LTD., TRICHUR. 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. 706 of 2009 -------------------------------------- Dated this the 29th day of July, 2009 J U D G M E N T ---------------------- Ramachandran Nair,J. The questions raised pertaining to assessee's liability for tax under the Interest Tax Act, on interest component of hire charges and on default interest thereon are covered by two judgments of Division Bench of this Court, one reported in Commissioner of Income Tax Vs. Kerala State Financial Enterprise and others (220 CTR 286), and the other in I.T.A.57 of 2004. So far as the interest from Indira Vikas Pathra and Kissan Vikas Pathra is concerned, the same is interest on deposit with Post Office under various schemes and therefore Tribunal rightly allowed the claim of the assessee. However, in view of the judgments of this Court above referred we allow the appeal in part by setting aside the order of the Tribunal and first appellate authority and remand the case back to the Assessing Officer for determination of liability under Interest Tax Act on interest received on hire charges and on default interest charged thereon, after giving an opportunity of hearing to the assessee and after serving a copy of this ITA.706/09 2 judgment on the assessee. The appeal is partly allowed as stated above. C.N.RAMACHANDRAN NAIR, JUDGE. C.K.ABDUL REHIM, JUDGE. okb