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2011 (11) TMI 457 - HC - Income TaxUndisclosed loan advanced - Search and seizure – Revenue made addition on ground that entries made in diary of assessee represented loans advanced to the persons by the assessee – assessee contended it to be expected contribution by the parties for the purpose of hotel business - Held that:- It was not found that there was any doubt with regard to their proposed contribution in the proposed hotel project to be installed by the assessee. It is a case where it is no where found that there was involvement of any actual transaction of amount between the parties. It appears to be a mere proposal where other persons, as they have stated in their affidavits expressed their desire to contribute for the hotel proposal. Thus, even if the source of fund have not been given as to how the money would be arranged, the affidavits cannot be held as untrustworthy. The CIT(A) as well as the Tribunal have rightly considered all the facts in detail and came to the conclusion for disallowing the addition. Whether there is no contravention of Rule 46 of the Rules, 1962 – Held that:- All the evidences were discussed before the AO and no additional evidence was taken on record at the stage of CIT(A) proceedings or before the Tribunal. Thus, it cannot be held that there was no compliance of statutory requirement of Rule 46 of the Rules, 1962. - Appeal is dismissed
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