The Commissioner Of Income Tax vs M/S.Right Leasing & Hire Purchase on 18 August, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITA.No. 1309 of 2009()


1. THE COMMISSIONER OF INCOME TAX,
                      ...  Petitioner

                        Vs



1. M/S.RIGHT LEASING & HIRE PURCHASE
                       ...       Respondent

                For Petitioner  :SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES)

                For Respondent  : No Appearance

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice C.K.ABDUL REHIM

 Dated :18/08/2009

 O R D E R
     C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ.
                      ----------------------------------
                       I.T.A. No.1309 of 2009

                      ----------------------------------

               Dated this the 18th day of August, 2009

                            J U D G M E N T

———————-

Ramachandran Nair,J.

The question pertaining to Interest Tax liability on hire charges

and finance charges is covered by judgment of this Court reported in

Commissioner of Income Tax Vs. Kerala State Financial

Enterprise and others (220 CTR 286). So far as default interest is

concerned we have held vide our judgment in ITA.57/2009 that the

same is an addition to the interest. However, interest received from

post office deposits under the Kisan Vikas Pathra and the Indira Vikas

Pathra will not attract interest tax is our finding in a batch cases.

Consequently we allow the appeal in part by setting aside the order of

the Tribunal and that of the CIT (Appeals) with direction to the

Assessing Officer to re-compute liability under the Interest Tax Act on

hire charges, finance charges and on default interest based on the

decision above referred after issuing notice to the assessee and after

serving a copy of this judgment on the assessee.

The appeal is disposed of as above.

C.N.RAMACHANDRAN NAIR, JUDGE.

C.K.ABDUL REHIM, JUDGE.

okb