9911796707
TMI Blog2019 (8) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of the assessee was subject to scrutiny and notice under Sec. 143(2) of the Act was issued on 01.08.2016. The assessee was engaged in the banking business, however, no banking activities was carried out during the year under consideration as the assessee bank was in the liquidation. Further facts of the case are discussed while adjudicating the ground of appeal filed by the assessee as under:- "1. The Assessing Officer and Ld. CIT(A), Baroda both have erred in law in considering income of interest received on advances Rs. 9,88,,259/- as "Income from other sources" instead of business income as shown by the assessee in the return of income. 2. The Assessing Officer and Ld.CIT(A), Baroda both have also erred in law in disallowing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and stated that on similar facts and circumstances in the assessee's own case for A.Y. 2009-10 the AO has treated similar income (i.e. interest on advance and interest from banks) as income from other sources. 4. The aggrieved assessee has filed appeal before the Ld. CIT(A). The Ld. CIT(A) has dismissed the appeal. We have heard the rival contention on this issue. The assessee has claimed the interest income of Rs. 9,88,259/- pertaining to the amount received from the borrower against its outstanding balance. In this regard, we have perused the provision of Sec. 176(3A) of the Act. The relevant part of this provision is reproduced as under:- "Where any business is discontinued in any year, any sum received after the discontinuance shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o probability of recovering the said fixed deposit amount from the bank, therefore, the impugned amount had been written off as bad debts. The AO has not agreed with the submission of the assessee. The AO was of the view that assessee's banking licence for carrying on banking business in India was cancelled under Sec. 22 of the Banking Regulation Act, 1949 by the Reserve Bank of India on 25th October, 2015, therefore, the assessee was not entitled to claim bad debt. 7. The aggrieved assessee has filed appeal before the Ld. CIT(A). Ld. CIT(A) has dismissed the appeal of the assessee. We have heard the rival contention on this issue. The assessee had made investment in fixed deposit with Sarvoday Co-operative bank Ltd., Ahmedabad in the reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he business and the income earned from such deposit was shown in the preceding year in its total income. With the assistance of the Ld. Representative we have gone through the material on record and observed that assessee has not demonstrated with any supporting evidences that it had shown any income earned from such deposit in the preceding years. In order to facilitate to adjudicate the impugned issue on merit we consider it appropriate to restore this issue to the file of the Ld. CIT(A) for adjudicating afresh after examination and verification of the relevant supporting detail to be furnished by the assessee. Therefore, this ground of appeal of the assessee is allowed for statistical purpose. 9. In the result, the appeal of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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