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. 738 of 2009() --------------------- ITA.35/COCH/2005 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.THRISSIVA LEASING & HIRE PURCHASE (P)LTD, RICE BAZAR, 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. 738 of 2009 -------------------------------------- Dated this the 29th day of July, 2009 J U D G M E N T ---------------------- Ramachandran Nair,J. First question raised that the liability for tax under the Interest Tax Act on interest component of hire charges and finance charges stands decided against the assessee by our judgment reported in Commissioner of Income Tax Vs. Kerala State Financial Enterprise and others (220 CTR 286). Following the said judgment we allow the appeal by setting aside the order of the Tribunal and that of the first appellate authority and remand the case back to the Assessing Officer for determination of liability based on the judgment above referred after giving an opportunity to the assessee and after serving a copy of this judgment. So far as the second question is concerned we find that the interest involved is from deposits, bonds etc. and not on loans or advances and therefore Tribunal rightly rejected the department's claim. The appeal is therefore allowed in part as stated above. C.N.RAMACHANDRAN NAIR, JUDGE. C.K.ABDUL REHIM, JUDGE. okb