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2013 (5) TMI 636 - AT - Income TaxInterest from Oriental Bank of Commerce - addition as not been credited in the Profit and Loss A/c. or not offered for taxation in the subsequent year - Assessee is a co-operative bank in liquidation with no banking activities were carried - Held that:- Assessee bank is under liquidation and is maintaining its books of accounts on cash basis & submitted that it can demonstrate that the accrued interest has already been included in its Profit and Loss account & it will lead to taxing the same income twice if addition made - Assessee granted one more opportunity to prove its contention that the interest is already included in income - ground of assessee allowed for statistical purposes. Interest income of the Bank - income from other sources v/s income from business - Held that:- Considering the case of Morvi Mercantile Bank Ltd [1975 (8) TMI 31 - GUJARAT High Court] when the liquidator realised the assets and invested the money in short-term deposits pending distribution he was not embarking upon any business. The realisation and distribution of assets cannot, be said to be carrying on business. It is obligatory upon the liquidator to realise the assets and the distribute the money amongst the creditors, and if pending distribution he invested the amount, it cannot be said that he was carrying on the business of investment merely because it may be one of the objects either under the memorandum or under the statute - no fault can be found with the order of AO to treat it as income from other sources. Against assessee.
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