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2016 (11) TMI 531 - AT - Income TaxAddition as unexplained cash credits - addition as interest expenditure on the aforementioned cash credits - Held that:- A.O. had made two additions which were not there in the first assessment order. Therefore, the assessment order to this extent is not as per the directions of the Tribunal and these two additions deserve to be deleted. Considering the facts in totality, as stood at the time of original assessment stage qua the directions of the Tribunal qua the aforementioned judicial analysis, in our considered opinion and understanding of the law the present assessment order is in complete disregard to the orders of the appellate authorities. Interest Expenses disallowed - Held that:- The interest free funds available with the assessee are in excess of the interest free advances made by it. The ratio laid down by the Hon'ble High Court of Bombay in the case of Reliance Utilities and Power [2009 (1) TMI 4 - BOMBAY HIGH COURT ] squarely apply on the facts of the case wherein the Hon'ble High Court has held that where there is a mixture of own funds and loan funds, then the presumption is that the interest free advances have been made out of own funds.Advances were made for business purposes. We set aside the findings of the ld. CIT(A) and direct the A.O. to delete the addition Unexplained cash credits addition - Held that:- If the transaction is done by account payee cheque then the identity of the payer goes into oblivion because the money has flown from one identified bank account to another identified bank account. We also find that wherever it was possible PAN details were made available to the A.O. No effort to verify from the allottees of the flats by making any physical verification thereof. In our considered opinion, the assessee has successfully established the identities. The transaction is done by account payee cheque. Further the identities of the allottees are supported by municipal tax bills of AMC and electricity bills. Considering these facts in totality, we do not find any reason for making the impugned addition. We, accordingly, set aside the findings of the ld. CIT(A) and direct the A.O. to delete the addition Assessee appeal allowed
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