The Commissioner Of Income Tax vs M/S.Vyaparavijayam Traders & … on 9 July, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITA.No. 398 of 2009()


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

                        Vs



1. M/S.VYAPARAVIJAYAM TRADERS & AGENCIES(P)
                       ...       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 :09/07/2009

 O R D E R
                      C.N.RAMACHANDRAN NAIR &
                              C.K.ABDUL REHIM, JJ.
                 ....................................................................
                           I.T. Appeal No.398 of 2009
                 ....................................................................
                     Dated this the 9th day of July, 2009.

                                        JUDGMENT

Ramachandran Nair, J.

Of the four questions raised by the Revenue in the appeal filed by

them, first three are covered by our decision in COMMISSIONER OF

INCOME-TAX V. KERALA STATE FINANCIAL ENTERPRISES LTD.

reported in 220 CTR 286. Following the said judgment, we allow the

appeal by reversing the orders of the Tribunal and that of the first appellate

authority with direction to the Assessing Officer to compute tax on interest

received on hire charges and finance charges based on the abovereferred

judgment after issuing notice to the assessee and after giving an opportunity

to the assessee.

2. So far as the last question is concerned, we do not think investment

in Kisan Vikas Patra is a loan or advance that attracts provisions of the

Interest Tax Act. Consequently this issue is decided against the Revenue.

The appeal is disposed of without issuing notice to the assessee only

2

to avoid further expenditure for them. However, the Assessing Officer will

issue a copy of the judgment to the assessee before initiating proceedings

for revision of assessment in terms of the judgment.

C.N.RAMACHANDRAN NAIR
Judge

C.K.ABDUL REHIM
Judge

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