The Commissioner Of Income Tax vs M/S.Varthakakshemam Hire … on 3 August, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITA.No. 426 of 2009()


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

                        Vs



1. M/S.VARTHAKAKSHEMAM HIRE PURCHASE &
                       ...       Respondent

                For Petitioner  :SRI.JOSE JOSEPH, SC, FOR INCOME TAX

                For Respondent  : No Appearance

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

 Dated :03/08/2009

 O R D E R
                    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