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2021 (5) TMI 723 - ITAT KOLKATADisallowance u/s. 35(1)(ii) - HELD THAT:- This issue covered in favour of the assessee against revenue by the decision of SANTOSH SURESH KUMAR AGARWAL [2018 (9) TMI 1827 - ITAT KOLKATA] wherein the Tribunal followed the decisions of the Coordinate Bench of this Tribunal in the case of Rajda Polymers [2017 (11) TMI 1631 - ITAT KOLKATA] allowed the claim of the assessee. Disallowance of loss - assessee purchased and sold jute -HELD THAT:- The relevant bills and vouchers are filed before the Assessing Officer by the assessee to prove the genuineness of the transactions. There was no investigation or verification above by the Assessing Officer. No evidence was gathered to demonstrate that the claim of the assessee was wrong. The disallowance was made merely on conjectures and surmises. The Ld. CIT(A) has also not considered the evidences in the record and in one line, rejected the contention of the assessee. This is not in accordance with law. Thus we delete this disallowance. Thus we allow these two grounds of the assessee. Addition made on account of deemed interest income - HELD THAT:- We find that notional income cannot be brought tax under the scheme of the Income Tax Act as held by the Hon'ble Gauhati High Court in the case of Highways Construction Co. Pvt. Ltd. [1992 (11) TMI 86 - GAUHATI HIGH COURT] - Respectfully following the proposition of law laid down in those cases, we delete this addition of notional income and allow this ground of the assessee.
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