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2013 (4) TMI 13 - ALLAHABAD HIGH COURTDeletion of additions on account of unex-plained share capital, unexplained share application money, unexplained sundry creditors, difference in the cost of construction being unexplained investment, FDRs purchased by the company, loading and unloading and salary expenses. Held that:- the Commissioner of Income-tax (Appeals) and the Tribunal find that the assessee had produced relevant evidence before the Commissioner of Income-tax (Appeals) establishing that all the persons, who had deposited the share application, were not fictitious persons. Most of them were identifiable ; they made the payment by cheques and most of them were assessed to income-tax. The Tribunal has given further relief to the asses-see and has not accepted the argument of the Department that the expla-nation furnished by the assessee for the addition under section 69 on account of the unexplained investment was not to the satisfaction of the Assessing Officer. - Revenue's appeal dismissed - decided in favor of assessee. Regarding charging of interest - held that:- Even if any provision of law is mandatory and provides for charging of tax or interest, the view taken in Ranchi Club Ltd. [2000 (8) TMI 79 - SUPREME COURT] is that such charge by the Assessing Officer should be specific and clear and the assessee must be made to know that the Assessing Officer has applied his mind and has ordered charging of interest. The mandatory nature of charging of interest and the actual charging of interest by application of mind and the mention of the proviso of law under which such interest is charged are two different things. - Decided in favor of assessee.
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