Income from funds diverted at source under liquidation not taxable

JCIT Vs General Co.op Bank Ltd (ITAT Ahmedabad) Held that as per section 21(2) of Deposit, Insurance and Credit Guarantee Corporation of India all the funds realized by Bank under liquidation are diverted at source. Such funds are not available to the assessee as income and hence such income is not taxable in the hands of the assessee. Facts- The assessee is a Co-Operative Bank which is under liquidation. Further, the banking business of the assessee company has been suspended by the Reserve Bank of India. Ld. PCIT held that as the banking license of the assessee is suspended, it cannot claim ...