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2012 (11) TMI 655 - AT - Income TaxHypothetical / imaginary income. - accrual of interest – alleged that assessee advanced loan/s to M/s. Trivandrum Rubber Works Ltd. - advance to a company under the same management by way of an unsecured loan, repayment of which was not regular – Held that:- Merely because the balance-sheet classifies the amount as an unsecured loan, and in our view not incorrectly, without anything more, would not by itself clothe the assessee with the right to receive interest, considering that there is, as aforesaid, no other legal or contractual basis for contending so - It is also not the Revenue’s case that any interest has been received on the said loan even on a subsequent date, so as to consider it as having been accrued, including for the relevant year - no legal or factual basis to confirm any interest as receivable from the lendee company, so as to consider it as having accrued, and the impugned income only represents a hypothetical/imaginary income - Addition deleted – In favor of assessee
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