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2012 (11) TMI 108 - AT - Income TaxAdventure in the nature of trade - Unsecured loan treated as a nonrefundable liability - Held that:- The assessee had not drawn profit and loss account for the relevant period neither it got its account audited under the provisions of Section 44AB, therefore, under the circumstances it is difficult to verify the correctness of the accounts maintained by it for the relevant period. Moreover, the assessee, itself, had accepted that the amount of Rs.75,06,811/- received during the relevant period has been shown wrongly under the head “unsecured loan” by the auditors. However, neither during the assessment proceedings nor during the appellate proceedings certificate from the auditors was filed to the effect that they had made a wrong entry for such amount. Since the AO has treated the same as trading receipt on such receipt, the deduction of cost and other expenditure incurred by the assessee is required to be given as decided in Calcutta Company Limited Versus Commissioner Of Income-Tax, West Bengal [1959 (5) TMI 3 - SUPREME COURT] - issue is restored back to the file of AO to decide afresh after verifying the claim of the assessee in respect of expenditure incurred out of the trading receipt and make a de novo assessment - assessee’s appeal is allowed for statistical purposes.
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