The Commissioner Of Incoem Tax vs M/S Vyaaravijayam Traders & … on 27 August, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITA.No. 544 of 2009()


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

                        Vs



1. M/S VYAARAVIJAYAM TRADERS & AGENCIES(P)
                       ...       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 :27/08/2009

 O R D E R
                    C.N.RAMACHANDRAN NAIR &
                            C.K.ABDUL REHIM, JJ.
               ....................................................................
                         I.T. Appeal No.544 of 2009
               ....................................................................
                Dated this the 27th day of August, 2009.

                                      JUDGMENT

Ramachandran Nair, J.

All the issues raised are covered by various judgments of this

court, one in COMMISSIONER OF INCOME TAX V. KERALA

STATE FINANCIAL ENTERPRISES LTD. reported in 220 CTR 286,

and another vide judgment in I.T.A. No.57/2009. Following these two

judgments we allow the departmental appeal by reversing the order of

the Tribunal and that of the first appellate authority and remand the

cases for recomputation of liability under the Interest Tax Act after

issuing notice to the assessee and after serving a copy of this judgment.

However, department’s claim for assessment of interest received on

Post Office Deposits under Indira Vikas Pathra and Kissan Vikas

Pathra Schemes cannot be allowed because these are only deposits or

2

investments and not in the nature of loan or advance. Therefore, we

dismiss the appeal on this question. The appeal is partly allowed as

above.

C.N.RAMACHANDRAN NAIR
Judge

C.K.ABDUL REHIM
Judge
pms