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2013 (11) TMI 906 - AT - Income TaxAddition u/s 41(1) of the Income Tax Act - initially amount shown as unsecured loans was treated as own money later on - Held that:- Money was received by the assessee in course of carrying on his business. Although it was treated as deposit and was of capital nature at the point of time it was received, by influx of time the money has become the assessee's own money - The assessee itself has treated the money as its own money and taken the amount to its profits and loss account. There is no explanation from the assessee why the surplus money was taken to its profit and loss account even if it was somebody else's money. Reliance has been placed upon the CIT vs.T.V. Sundaram Iyenger & Sons Ltd. [1996 (9) TMI 1 - SUPREME Court] - In the present case considering the fact that the firm is a sister concern of assessee, has dissolved w.e.f. 31-3-2006, no interest paid during the year under review, no material on record to prove that it has demanded the repayment of amount at any time nothing on record to demonstrate that assessee has paid the amount till date, A.O's action of making addition u/s. 41(1)cannot be faulted – Decided against the Assessee.
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