The Commissioner Of Income Tax vs Kerala Financial Corporation on 21 August, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITA.No. 1488 of 2009()


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

                        Vs



1. KERALA FINANCIAL CORPORATION
                       ...       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 :21/08/2009

 O R D E R
                  C .N. RAMACHANDRAN NAIR &
                       C. K. ABDUL REHIM, JJ.
                  --------------------------------------------
                    I.T.A. No.1488 &1495 OF 2009
                  --------------------------------------------
                Dated this the 21st day of August, 2009

                               JUDGMENT

Ramachandran Nair, J.

The question raised is whether interest on Bank deposits attracts

interest tax under the Interest Tax Act. Since the Bank deposits are not

loan or advance made by the respondent, the Tribunal rightly rejected

the department’s claim to tax interest on the interest income from such

deposits under the Interest Tax Act. We therefore dismiss these

appeals.

(C.N.RAMACHANDRAN NAIR)
Judge.

(C. K. ABDUL REHIM)
Judge.

kk

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