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2012 (7) TMI 726 - ITAT, DELHIDeleting the addition on account of unsecured loans by CIT(A) - AO brought to tax these loans u/s 41(1)(a) - Held that:- Considering the provisions of sec. 41(1)(a)the assessee did not receive any benefit nor the amount has been transferred to profit and loss account nor even written off and thus, the amount did not become the assessee's own money - Not only that these liabilities are not trading liabilities,even otherwise there is nothing on record to establish that the aforesaid liabilities had ceased to exist or were remitted by the creditors in the year under consideration - the provisions of sec. 41(1)(a) cannot attracted - in favour of assessee. Charging of interest on the aforesaid loans - Held that:- Nothing to suggest that the assessee discharged the onus laid down upon them that borrowed funds had indeed been utilized for the purpose of its business so as to entitle it to claim deduction u/s 36(1)(iii) - in case the assessee had some surplus amount which could not be repaid prematurely to its creditors, still the same were either required to be circulated and utilised for the purpose of business or to be invested in a manner in which it generates income and not that these were diverted towards associate or sister concerns free of interest - this would result in not presenting the true and correct picture of the accounts of the assessee - it cannot be held that the funds to the extent diverted to associate concerns without charging any interest - against assessee. Credit of TDS & Set off of brought forward loss - Held that:- CIT(A) directed the AO to allow the credit for TDS after necessary verification in terms of provisions of section 155(14) & Set off of brought forward loss but as the assessee did not make any submissions on this issue nor placed any material to enable to take a different view in the matter no infirmity in the directions of the CIT(A).
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