Review to assessee loans as income from other sources was unjustified

IT: When in absence of satisfactory explanation about source, unsecured loan was treated by Assessing Officer under head business income, such a view of Assessing Officer being possible, review to assessee loans as income from other sources was unjustified
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[2014] 48 taxmann.com 352 (Kerala)
HIGH COURT OF KERALA
Commissioner of Income-tax, Calicut
v.
P.D. Abraham*
DR. MANJULA CHELLUR, CJ.
AND A.M. SHAFFIQUE, J.
IT APPEAL NOS. 147 OF 2012 & 46 OF 2014†
MARCH  28, 2014
Section 68, read with sections 69 and 263, of the Income-tax Act, 1961 - Cash credit (Loans) - Assessment year 2005-06 - Assessee businessman received an unsecured loan - No satisfactory explanation was given regarding source of creditor - Assessing Officer made addition invoking section 68 under head 'business income' - However, Commissioner opined that it should have been assessed under head 'income from other sources' and, thus, revised assessment - Whether view of Assessing Officer was a possible view and, hence, there was no reason for Commissioner to invoke section 263 so as to arrive at a different findings - Held, yes [Para 5] [In favour of assessee]