TaxTMI 
TaxTMI 
TaxTMI 
2015 (10) TMI 2833
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....hout appreciating the fact properly. 2. Learned CIT has erred in fact & in law in confirming addition without considering the fact that the net profit of the society from banking activity is Rs.1067941/- as per profit & loss account which is assessable as income from business & if Rs 3162825/- which is interest income on deposit with Union Bank of India is to be taxed as income from other sources then there will be net loss of Rs.2094884/- & society is entitled to claim to set off the business loss with income from other sources. 3. Learned CIT has erred in fact & in law in confirming addition of Rs.3162825/- & charging to tax Rs.3162825/- separately a) Without considering the fact that only positive income of Rs.1067941/- can be t....
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....the net profit of the assessee society from banking activity was Rs.10,67,941/- as per Profit & Loss Account, which was declared as income from business and in case sum of Rs.31,62,825/- being the interest income on deposit with Union Bank of India was to be taxed as income from other sources, then there would be net loss of Rs.20,94,884/- under the head 'Income from business', which the assessee is entitled to claim as set off with the income assessed as income from other sources. 5. Briefly, in the facts of the present case, the assessee was a co-operative society engaged in the business of providing credit facility to its members. The assessee claims that it was engaged in the business of banking and consequently, the income earned by t....
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....me of the assessee is Rs.10,67,941/- and in case the income from interest of Rs.31,62,825/- is assessed as income from other sources, then there would be net loss of Rs.20,94,884/- assessable under the head 'Income from business'. The next claim of the assessee in this regard was that the said business loss is to be adjusted against the income from other sources. Similar plea was raised before the CIT(A). However, in the absence of any details having been furnished by the assessee, the Assessing Officer was directed to examine the said claim of expenses. The alternate plea of the assessee is that it has only positive income of Rs.10,67,941/-, the Assessing Officer had not disallowed any of the expenses in the hands of assessee. In view ther....