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2014 (1) TMI 1495 - HC - Income TaxUnaccounted investment - Held that:- The assessee had entered into an agreement with HUF to incorporate a company on the plot of lan belonging to the said HUF - Later on the company shall be run in partnership by both the assessee as well as HUF in which the contribution of the parties shall be the cost of construction and plot of land respectively - The expenses for construction were being managed by the assessee by borrowing the funds from the HUF - The expenses made by the assessee has been adopted by the company - The company has not even obtained the certificate of commencement of business up to 2nd January, 1976 and up to 31st March, 1976 the company had no source of income - The company had no income at the time when the expenditure towards construction was undertaken - The unaccounted investment cannot be assessed at the hands of the company - There being no income of the company at the relevant period when unaccounted investment was made, the same has to be assessed in the hands of assessee - The Tribunal fell in error in applying the judgment of this Court in Commissioner of Income Tax, U.P. vs. The Bijli Cotton Mills Ltd., Agra - Decided against Revenue.
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