Case Law Details
ITO Vs M/s. Mundela Service Co-operative Bank Ltd. (ITAT Cochin)
With regard to non granting of deduction u/s. 80P(2) of the Act, treating the unexplained credits as ‘income from other sources’, this issue was considered by the Jurisdictional High Court in the case of Kerala Sponge Iron Ltd., 79 taxmann.com/379 ITR 330 wherein ‘the income had been treated as unexplained cash credit under section 68. Once it was so done for the purpose of set off or any other purpose, the unexplained income could not be treated as business income under any one of the heads provided under section 14 in which case the question of set off did not arise. Therefore, the order of the Tribunal to the extent it had set aside the order of the Commissioner (Appeals) directing the Assessing Officer to allow the set off of the current year’s business loss as well as brought forward business loss and unabsorbed depreciation against income assessed under section 68 was to be set aside.” In view of this, we are of the opinion that deduction under section 80P(2) of the Act cannot be allowed for the unexplained income assessed as under section 68 of the Act and the said income cannot be treated as business income.
FULL TEXT OF THE ITAT JUDGEMENT
These appeals filed by the Revenue in ITA No. 143/Coch/2018 for the assessment year 2011-12, ITA Nos. 128/Coch/2019 and 151/Coch/2019 for the assessment years 2014-15 and 2015-16 are directed against the different orders of the CIT(A), Trivandrum. The appeal filed by the assessee in ITA No. 80/Coch/2018 for the assessment year 2014-15 is directed against the order of the CIT(A), Trivandrum dated 19/02/2018.
2. The Revenue has raised the following common grounds of appeals:
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