TMI Blog2013 (5) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot, 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. - I. T. A. No. 2730/AHD/2012 - - - Dated:- 17-5-2013 - Shri G. C. Gupta And Shri Anil Chaturvedi, A.M.,JJ. For the Appellant : Shri P. B. Doshi For the Respondent : Shri D. K. Singh, Sr. D. R. ORDER Per Shri Anil Chaturvedi,A. M. 1. This appeal is filed by the Assessee against the order of Ld. CIT(A)-IV, Baroda dated 12.09.2012 for the assessment year 2009-10. 2. The facts as culled out from the orders of the lower authorities are as under. 3. Assessee is a co-operative bank engaged in the banking business but however at present the bank is in liquidation and no banking activities were carried out in the year under appeal. Assessee filed its return of income for A.Y. 2009-10 on 25.9.2009 declar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition of Rs. 31,73,391/- as mentioned by the AO in the assessment order as well as the above submission of the AR of the appellant have been considered. The first ground of appeal of the appellant is that the AO has erred in law in making addition of Rs. 31,73,391/- on the ground that this interest from Oriental Bank of Commerce has not been credited in the P L Account or not offered for taxation in the subsequent year. The AR in his above submission has submitted that this interest income of Rs 31,73,391/- was already included in the total income from the Oriental bank of Commerce of Rs. 46,18,408/- credited to the P L Account and therefore, there should not be any further addition. But, in this regard, the AR has not been able to file any details or evidences which could show that the above amount of interest of Rs. 31,73,391/-- is already included in the total interest of Rs. 46,18,408/- as received from the Oriental bank of Commerce. The A R has not filed any evidence which could show that this amount of interest of Rs. 31,73,391/- was credited by the appellant bank on receipt basis in the P L Account. In the case of the appellant, the Oriental bank of Commerce had prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same income twice. CIT(A) has confirmed the addition made by the Assessing Officer for the reason that the Assessee could not substantiate its stand that the amount has already been included in the income. Before us the ld. A.R. submitted that it can demonstrate that the accrued interest has already been included in its Profit and Loss account. In the peculiar circumstances of case, we are of the view that the Assessee be granted one more opportunity to prove its contention that the interest of Rs. 31,73,391/- in already included in income and we therefore remit the issue to the file of Assessing Officer and direct him to verify the contention of the Assessee. If the contention of the Assessee is found correct, the addition made be deleted. The Assessee is also directed to furnish the necessary evidence to the satisfaction of Assessing Officer and reconcile its interest receipts. Thus this ground of assessee is allowed for statistical purposes. 8. Ground no. 2 is w r t considering the interest income as" income from other sources":- 9. During the course of assessment proceedings Assessing Officer notice that the interest receipts has been considered to be income from busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny was wound up and its license to carry on business of banking has been suspended by the Reserve Bank of India, it could not be said that the liquidation when it was realizing assets and was investing in short term deposits with permission of court pending distribution was really carrying on business. The interest received by the liquidator was taxable as income from other sources and not as income from business". 11. Aggrieved by the order of CIT(A) the Assessee is now in appeal before us. Before us the Ld A.R. submitted suspension of licence of Assessee by RBI does not mean that bank is closed. It was further submitted that even though RBI has appointed Official Liquidator to administer the activities of bank, the bank was carrying on the recovery proceedings to recover outstanding funds from borrowers, it was further repaying the depositors as per RBI guidelines, maintaining statutory liquidity ratio as per RBI norms and filing various reports to RBI. It was thus submitted that if cannot be said that the business of bank has closed and therefore the interest income should be considered as income from business and not" income from other sources" 12. The Ld D.R. on the other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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