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2014 (2) TMI 1213 - AT - Income TaxUnexplained investment taxable u/s. 69 - CIT(A) deleted the addition - Held that:- We find that the FAA has given a categorical finding of fact that the property was not owned by the assessee in the year under consideration, whereas order of the AO is silent on this issue. DR could not controvert the fact narrated by the FAA. From the accounts of the assessee it is clear that amount in question was opening balance for the year under appeal. Therefore, no addition could have been made for the year. We are of the opinion that the order of the FAA does not suffer from any infirmity - Decided in favour of assessee Addition made u/s. 23 - CIT(A) deleted the addition - Held that:- As assessee did not own three properties as alleged by the AO. As the order of the AO is not based on facts and the FAA has decided the issue considering the factual position, so confirming his order we decide ground no. 2 against the AO. Deemed dividend u/s. 2(22)(e) - Held that:- Advance received by the assessee for purchase of flat could not be treated deemed dividend. We find that in the matter before us, amount received by the assessee was meant for purchasing a flat. Therefore, respectfully, following the order of the coordinating bench in the case of wife of the assessee, Mrs. Amisha B Koradia we reverse the order of the FAA and decided ground no. 1 in favour of the assessee. Disallowance of interest - Held that:- There is no dispute about the fact that the assessee has overdrawn from the partnership firm M/s Sagar Construction; therefore, the interest paid to the Sagar Construction for the debit balance in the capital account is an allowable expenditure against the business income of the assessee and particularly against the interest/remuneration received from the partnership firm. - Decided in favour of assessee.
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