Kerala High Court
The Commissioner Of Income Tax vs M/S.Index Chits & Finance (P) Ltd on 9 July, 2009
Bench: C.N.Ramachandran Nair, C.K.Abdul Rehim
IN THE HIGH COURT OF KERALA AT ERNAKULAM
ITA.No. 390 of 2009()
1. THE COMMISSIONER OF INCOME TAX,TRICHUR
... Petitioner
Vs
1. M/S.INDEX CHITS & FINANCE (P) LTD
... 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 :09/07/2009
O R D E R
C.N.RAMACHANDRAN NAIR &
C.K.ABDUL REHIM, JJ.
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I.T. Appeal No.390 of 2009
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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. 2
The appeal is disposed of without issuing notice to the assessee only 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 pms