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2016 (8) TMI 1464 - AT - Income TaxAdditions u/s 41(1) - assessee contested that unsecured loans represent capital transactions - CIT-A deleted the addition - HELD THAT:- Assessee has obtained unsecured loans from various parties, the confirmation of which he failed to produce. Nevertheless, it is nowhere disputed that the liability in respect thereof has ceased to exist. CIT(A) has observed that these represents loan transaction and the assessee has not purchased any merchandise from these parties. The unsecured loan obtained by the assessee are capital in nature and do not represent any trading liability, the deduction of which has been allowed to assessee. Further, the revenue has failed to prove the remission or cessation thereof. So, section 41(1) has no applicability in the case of the assessee. Resultantly, addition made on this account has rightly been deleted by CIT(A) - Decided in favour of assessee. Disallowance of expenses u/s. 37(1) - HELD THAT:- CIT(A) has allowed substantial relief to assessee after considering the detail submissions of the assessee in this regard. These submissions were not before AO and these constitute additional evidences for which opportunity should be provided to AO for examination. Therefore, this issue of disallowance of expenses is remitted back to the AO so as to afford another opportunity to revenue in this regard.
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