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2017 (5) TMI 919 - AT - Income TaxSection 68 addition of unexplained cash credits - assessee has not been able to prove source alongwith genuineness and creditworthiness of entity - Held that:- The assessee has filed all relevant details alongwith assessment records of the said entity explaining source of the loans to the above entity’s balance sheet indicating sufficient reserves, surplus and share premium as followed by repayment in succeeding assessment year. Learned Departmental Representative fails to rebut CIT(A)’s conclusion that the assessee has been having regular loan transactions with the said entity. We notice in this backdrop that hon’ble jurisdictional high court’s decision in DCIT vs. Rohini Builders (2001 (3) TMI 9 - GUJARAT High Court) upholding tribunal’s conclusion deleting Section 68 addition in view of identical details; squarely applies here. We take into account all these facts and judicial precedents to affirm CIT(A)’s findings under challenge deleting the impugned addition. - Decided in favour of assessee. Disallowance of additional depreciation - assessee had claimed the same @20% on machinery used for crimping of yarn - Held that:- Hon’ble Bombay high court’s decision in CIT vs. Emptee Poly-Yarn (P) Ltd. (2008 (2) TMI 313 - BOMBAY HIGH COURT) takes note of CBDT Circular dated 22.11.1985 clarifying that crimping of yarn also amount to a manufacturing activity. He thus deletes the impugned disallowance. Learned Departmental Representative fails to dispute the true purport of the abovestated circular as well as hon’ble Bombay high court’s decision quoted hereinabove. We accordingly affirm CIT(A)’s finding under challenge qua this latter issue as well. - Decided in favour of assessee.
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