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2013 (8) TMI 38 - AT - Income TaxAddition on account of notional interest - advance amount to Toy N Toy International against the purchase of building with furniture fixture fittings - Held that:- The assessee started giving advances in financial year 2006-07 and on 12.5.2006 MOU was executed between the parties for transfer of factory premises and part possession was conveyed. On 2.7.2007 sale deed was executed. Therefore, it can be concluded that till the conclusion of sale deed amounts advanced continued to be for acquisition of assets for which Tribunal had already deleted the notional interest in earlier year. The assessee has passed an entry for purchase of asset on 2.7.2007. The facts of the present case are similar to the facts of earlier year as the transaction started in earlier year and the amount advanced being for purchase of an asset for business purposes, no disallowance can be made. AO wrongly made the addition by holding that assessee itself added back notional interest from 25.5.2007 which is though a fact but the interest was added back on amounts advanced which was over and above the sale consideration. Therefore, no difference in facts and circumstances of the present case with the earlier year & consequently the addition deleted. In favour of assessee.
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