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 FRIDAY, THE 14TH AUGUST 2009 / 23RD SRAVANA 1931 ITA.No. 1198 of 2009() ---------------------- ITA.66/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/RESPONDENT: ------------------------------- M/S. SUBITHA LEASING COMPANY LTD., KUNNAMKULAM, TRICHUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 14/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. ----------------------------------- I.T.A. No.1198 of 2009 -------------------------------------- Dated this the 14th day of August, 2009 J U D G M E N T ---------------------- Ramachandran Nair,J. The first question raised stands decided in favour of the appellant vide our decision reported in Commissioner of Income Tax Vs. Kerala State Financial Enterprise and others (220 CTR 286). So far as the second question is concerned we reject the departmental appeal because interests received on securities and bonds will not attract liability under the Interest Tax Act because these are investments and not loans or advances. Consequently we allow the appeal in part by setting aside the order of the Tribunal and that of the first appellate authority and remand the matter to the Assessing Officer for redoing the assessment on finance charges, hire charges, etc. based on the decision referred above after issuing notice to the assessee and after serving a copy of this judgment on the assessee. C.N.RAMACHANDRAN NAIR, JUDGE. C.K.ABDUL REHIM, JUDGE. okb