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 MONDAY, THE 3RD AUGUST 2009 / 12TH SRAVANA 1931 ITA.No. 426 of 2009() --------------------- ITA.9/COCH/2005 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT --------------------------------------- THE COMMISSIONER OF INCOME TAX, TRICHUR. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT ------------------------- M/S.VARTHAKAKSHEMAM HIRE PURCHASE & LEASING CO.(P) LTD., RICE BAZAR,TRICHUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 03/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. .................................................................... I.T. Appeal No.426 of 2009 .................................................................... Dated this the 3rd day of August, 2009. JUDGMENT Ramachandran Nair, J. Since the questions raised i.e. liability for interest tax on hire charges and on default interest charged thereon are covered by judgments in COMMISSIONER OF INCOME TAX V. KERALA STATE FINANCIAL ENTERPRISES LTD. (220 CTR 286) and in I.T.A. No.57/2009, following the said judgments we set aside the orders of the Tribunal and that of the first appellate authority and remand the matter to the Assessing Officer for recomputation of liability based on judgments abovereferred, after issuing notice and after serving a copy of this judgment on the assessee. So far as interest on Kisan Vikas Pathra is concerned, the same cannot be assessed to interest tax as a deposit in the Post Officer under 2 this scheme is only an investment and not a loan or advance. The appeal is allowed in part as above. C.N.RAMACHANDRAN NAIR Judge C.K.ABDUL REHIM Judge pms