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2015 (7) TMI 167 - AT - Income TaxUnsecured loans - Held that:- Clear evidence and reasons to believe that the assessee's efforts to take over GBES along with land did not materialize. The assessee has received back all the payments made towards membership and also loan to GBES are returned by cheque and recorded in the books of the assessee. Therefore, the contention of the assessee having received cash also in the books on cancellation cannot be rejected. Also scrutinizing the loan confirmation letters from the various parties to GBES, these confirmations are self explanatory giving complete particulars of payment and also of the parties. Thus no reason to believe that these unsecured loans are fictitious. Assessee even though if had taken over GBES, the loans if existed on the date of taking over would have become the loans of the society under the new management. Under no circumstances the assessee can be brought to tax on account of these unsecured loans. The AO has grossly erred in making this addition. The evidence pointed out to the fact there was a negotiation and certain payment for transfer of GB Educational Society to the assessee and that the transaction could not be completed and under those circumstances the finding of the first appellate authority have to be upheld. - Decided against revenue.
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