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2016 (10) TMI 851 - AT - Income TaxAddition u/s 68 - Addition on loan and advances - Held that:- As during the course of assessment proceedings, the assessee filed Confirmation, ITR, Computation of income, Bank statement, and Balance Sheet as on 31.03.2008 of the lender and the payment were made through the loan was also repaid back before the initiation of banking channels. The loan was also repaid back before the initiation of assessment proceedings. It was noted that the AO did not make any specific enquiries in the assessment proceedings as well as in the remand proceedings to discredit the documents produced by the aforesaid aspects and no efforts were made to pursue the lender to determine their credit worthiness. Moreover, there was no adverse material in the hands of AO which casts aspersions on the genuineness of transaction. Mere non compliance of summon cannot be the basis to make addition. - No additions - Decided against revenue Addition on loan and advances - Held that:- since the amount advanced was in the nature of loan which was repayable in future and hence the provision of section 56(2)(vi) of the Income Tax Act cannot be invoked against the assessee and therefore the assessing officer was rightly directed to delete the impugned addition. In the background, CIT(A) has passed a well reasoned order which does not need any interference hence uphold the same
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