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2012 (8) TMI 802 - AT - Income TaxAddition u/s 69A - search - alleged unexplained advances and unexplained investment in pawned silver articles on ground of shortage of funds noticed in Girvi register and pawned silver articles found from the searched premises - assessee contended that there was no shortage of fund for making advances as the opening capital and incomes generated during the A.Y. under consideration was sufficient enough to explain this shortage, and appellant was engaged in money lending business for which silver articles were pawned with the appellant group by borrowers of money - Held that:- There is uncontroverted finding in the impugned order that capital was available with the assessee before the search. Even as per the appraisal report, prepared by the department, the opening capital from Girvi register was arrived at Rs.1,12,85,080/- and the assessee group claimed that it was doing money lending business for the last 40 years. In view of this uncontroverted claim, we are of the view that the AO misdirected himself ignoring both the opening capital and repayment receipt, while making the additions. Notional interest on provision of interest free loan - assessee contended that it was personal loan given to the family friend to facilitate him to purchase the land and the property was merely mortgaged as a security and was to be returned back after return of money - Held that:- Addition was made by the AO on the plea that full details of the transactions were not furnished by the assessee and he drew adverse inference. In the absence of any positive material brought by the Revenue, addition is deleted since notional income is not taxable under the Act - Decided in favor of assessee
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