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2017 (4) TMI 447 - AT - Income TaxShare trading loss - business loss OR speculation loss - whether for coming to a conclusion that the principal business of an Assessee is giving of loans and advances, whether the funds deployed would be the relevant criteria? - Held that:- The decision in the case of Savi Commercial (2015 (4) TMI 554 - CALCUTTA HIGH COURT) clearly lays down the proposition that volume of loans and advances would be decisive to come to a conclusion that the principal business of a company was granting loans and advances. It is undisputed that the funds deployed in the business of granting loans and advances by the Assessee was more over a number of AYs. Thus the conclusion of the CIT(A) that the principal business of the Assessee was giving of loans and advances and therefore the Assessee was outside the mischief of Explanation to Sec.73 of the Act, is just and proper and calls for no interference. - Decided against revenue Addition on bogus sundry creditors - Held that:- In the light of the findings of CIT(A) that the income in question has been written back in A.Y.2013-14 and offered to tax, the action of AO in bringing the said amount to tax in A.Y.2008-09 cannot be sustained. Moreover, there was no material on record to show that the assessee’s liability to re-pay M/s. Swagatam Lefin Pvt. Ltd was remitted by the other party or the liability ceased to exist. Therefore the condition for invoking the provision of Section 41(1) of the Act was not satisfied. The CIT(A) was therefore fully justified in deleting the addition made by AO. Consequently ground raised by the revenue is dismissed.
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