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 TUESDAY, THE 18TH AUGUST 2009 / 27TH SRAVANA 1931 ITA.No. 1322 of 2009() ---------------------- ITA.57/2004 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.MASTER LINK LEASING & FINANCE LTD, KUNNAMKULAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 18/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. .................................................................... I.T.A. No.1322 of 2009 .................................................................... Dated this the 18th day of August, 2009. JUDGMENT Ramachandran Nair, J. While finance charges attract interest tax liability under the Interest Tax Act,vide our judgment reported in Commissioner of Income Tax Vs. Kerala State Financial Enterprise and others (220 CTR 286) we have held in a batch cases that interest on Indira Vikas Pathra will not attract liability. Since the issue is covered by Division Bench judgment of this Court the appeal is allowed in part setting aside the order of the Tribunal and that of the first appellate authority with a direction to the Assessing Officer to re-do the assessment based on the judgment above referred after issuing notice to the assessee and after serving a copy of this judgment on the assessee. The appeal is disposed of as above. C.N.RAMACHANDRAN NAIR, JUDGE C.K.ABDUL REHIM, JUDGE okb