IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN FRIDAY, THE 30TH OCTOBER 2009 / 8TH KARTHIKA 1931 ITA.No. 222 of 2009() --------------------- ITA.161/COCH/2001 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: -------------------- THE COMMISSIONER OF INCOME TAX, TRICHUR. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- THE SOUTH INDIAN BANK LTD, TRICHUR. ADV. SRI.P.BALAKRISHNAN (E) FOR R THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 30/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & V.K. MOHANAN, JJ. -------------------------------------------- I.T.A. No. 222 OF 2009 -------------------------------------------- Dated this the 30th day of October, 2009 JUDGMENT Ramachandran Nair, J. The first issue raised is covered by the judgment of this Court reported in CIT V. NEDUNGADI BANK LTD., 264 ITR 545. So far as the second issue is concerned, we uphold the order of the Tribunal because the Supreme Court in the decision in INDIA CEMENT's case, 60 I.T.R. 42 held that the expenditure incurred for raising loan, which in this case is bond issued, is an allowable deduction as revenue expenditure. Consequently the appeal is dismissed. (C.N.RAMACHANDRAN NAIR) Judge. (V.K. MOHANAN) Judge. kk 2