IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN WEDNESDAY, THE 11TH MARCH 2009 / 20TH PHALGUNA 1930 OTC.No. 8 of 2007() ------------------- AITA.5/2005 of AGRL.I.T.ADL.BENCH,ERNAKULAM .................... PETITIONER ------------------------------ M/S.PLANTATION CORPORATION OF KERALA LTD., POST BOX NO.12, KOTTAYAM - 686 004. BY ADV. SRI.JOSEPH MARKOSE, SENIOR ADVOCATE SRI.MATHEWS K.UTHUPPACHAN RESPONDENT(S): --------------- STATE OF KERALA, REPRESENTED BY THE SECRETARY (TAXES), TRIVANDRUM. BY G.P. SRI.V.K.SHAMSUDEEN THIS OTHER TAX CASES HAVING BEEN FINALLY HEARD ON 11/03/2009, THE COURT ON 11/03/2009 PASSED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. .................................................................... O.T.C. No.8 of 2007 .................................................................... Dated this the 11th day of March, 2009. JUDGMENT Ramachandran Nair, J. The question raised is whether interest income received on deposits in Banks and Treasuries constitute agricultural income under Section 4(2)(ii) of the Agricultural Income Tax Act. On going through the Tribunal's order and after hearing counsel appearing for both sides, we do not think Section 4(2)(ii) has any application for the interest income received on deposits made by the assessee. In fact, Section 4 (2)(ii) pertains to expenditure allowed and later recouped by the assessee. We, therefore, allow the O.T.C. by vacating the order of the Tribunal with direction to the Assessing Officer to exclude the interest income in the assessment under the A.I.T. Act. C.N.RAMACHANDRAN NAIR Judge K.SURENDRA MOHAN Judge pms