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2012 (7) TMI 102 - AT - Income TaxShare application money - addition u/s 68 on ground that identify and creditworthiness of the investors and the genuineness of the transactions was not established - Held that:- In the present case, the assessee has provided to the A.O. not only the names of the shareholders but their addresses along with PAN and Bank statements etc. Hence, the assessee has discharged its primary onus and, therefore, in the light of judgment in case of Lovely Exports (2008 (1) TMI 575 (SC)) and also in the case of Divine Leasing and Finance Ltd. (2006 (11) TMI 121 (HC)), the addition made by the A.O. with regard to receipt of share application money cannot be sustained. The same is deleted - Decided in favor of assessee. Unsecured loan - addition - AY 02-03, 03-04 - Held that:- Since assessee has not provided any confirmation of this loan creditor or his address or PAN etc. and nothing has been provided to establish the creditworthiness of this loan creditor. Therefore, addition made is upheld - Decided against assessee. Unsecured loan - addition - AY 04-05 - Held that:- Since all the three ingredients i.e. identity, creditworthiness of loan creditors as well as genuineness of transaction were established. No adverse material had been brought on record by the A.O. and, therefore, the addition made by the A.O. simply on the basis of this aspect hat the notice issued were received back unserved is not justified. Addition deleted. Repairs to plant and machinery - factory expenses - dis-allowance of excess expenditure in comparison to expenditure incurred in previous year - Held that:- Unless it is established that the claim of expenditure is either bogus or is of capital/personal in nature, dis-allowance is not justified. In absence of any contrary material on record, addition made is deleted - Decided in favor of assessee. Unexplained advances - addition made of notional interest - Held that:- When there is no finding to the effect that actually the loan had been granted on interest or that interest has actually been collected and collection of interest was not reflected in the account, no addition can be made on account of notional interest. Addition is deleted. See B & A Plantations and Industries Ltd Vs CIT (1999 (12) TMI 43 (HC)) - Decided in favor of assessee Bad debts and advances written off - dis-allowance - Held that:- Issue is covered in favor of assessee in respect of bad debts by decision in case of TRF Ltd(2010 (2) TMI 211 - SUPREME COURT). However, since assessee could not explain the nature of these advances and unless the nature of advances is business advance, same cannot be allowed - Decided partly in favor of assessee.
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