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2012 (9) TMI 227 - AT - Income TaxAddition made u/s. 36(1)(iii) treating the proportionate investment made towards purchase of property out of borrowed funds - Held that:- No reasons have been shown as to why proportionate interest has been disallowed in this case when sufficient capital withdrawals and taxable income is available to the assessee for the purpose of making investment in the property. Also, no loan was taken during the assessment year under appeal, instead there was reduction in unsecured loans. Hence it is held that assessee had sufficient funds for the purpose of making investment in the properties. Dis-allowance made is deleted hereby Adhoc addition made to cover possible leakages - Held that:- Assessee produced all the bills and vouchers in respect of the expenses. Nothing is pointed out specifically in the assessment order as to which of the expenses are not verifiable. Therefore, the addition is clearly unjustified - Decided in favor of assessee
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