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2012 (6) TMI 154 - AT - Income TaxAddition of Rs. 50,00,000 on account of share application money - Addition of Rs. 9,75,668, on account of interest earned on bank deposits - In the absence of confirmation and copy of application submitted for allotment of share, the nature of money received by the assessee cannot be held to be money received as share application money. In the present case there is complete absence of linkage of the amount credited by the assessee in its books of account and the amount having been paid by those creditors and, therefore, it cannot be said that the identity has been established vis-a-vis the deposits received by the assessee from those companies - The initial burden cannot be said to be discharged by simply placing on record the information of creditor which is obtained from the Registrar of Companies website - The amount has ultimately been credited by the assessee in its profit and loss account and it has neither returned to those parties nor is any share allotted to them - Held that: the contention that the assessee has a strained relationship with the creditors is wholly unsupported and cannot be accepted Regarding business income or other sources - assessee in the present case was running a hotel which was temporarily closed for the renovation - Held that: link between the amounts borrowed for purchase of capital asset and development of infrastructure before commencement of business and the amount invested in fixed deposit receipts is absent in the present case as no document whatsoever has been brought on record to show that whatever was invested in fixed deposit receipt was actually out of the amount received by the assessee for acquiring capital asset or for development of infrastructure - In the absence of such link, the amount has to be assessed separately as income from other sources - Decided against the assessee
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