IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 9TH SEPTEMBER 2009 / 18TH BHADRA 1931 ITA.No. 908 of 2009() --------------------- ITA.227/COCH/2002 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT --------------------------------------- THE COMMISSIONER OF INCOME TAX,COCHIN. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT ------------------------- ERNAKULAM KARAYOGAM, DARBAR HALL ROAD,COCHIN-16. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 09/09/2009, ALONG WITH ITA NO.710 OF 2009 & ITA NO. 825 OF 2009,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. .................................................................... I.T. Appeal Nos.908, 710 & 825 of 2009 .................................................................... Dated this the 9th day of September, 2009. JUDGMENT Ramachandran Nair, J. Heard Standing Counsel appearing for the appellant. Respondent-assessee is admittedly eligible for exemption from payment of income tax under Section 11 of the Income Tax Act. In fact, registration was granted under Section 12A of the Income Tax Act. However, the Assessing Officer declined exemption for the reason that surplus income was deposited in Co-operative Bank as against in investments in terms of Section 11(5) of the Act. On coming to know about the same, the assessee converted the deposit to deposit permissible under Section 11(5) of the Act. The first appellate authority as well as the Tribunal found that there is only technical defect which should not lead to denial of exemption, particularly when the assessee has rectified the mistake. We do not find any ground to 2 interfere with the orders of the Tribunal. Consequently appeals are dismissed. C.N.RAMACHANDRAN NAIR Judge V.K.MOHANAN Judge pms