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2018 (6) TMI 1058 - HC - Income TaxAdditions made u/s 68 - assessee has not been able to prove source along with genuineness and creditworthiness of the stated entity - Held that:- Assessee has filed all relevant details along with 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 - reliance is placed on DEPUTY COMMISSIONER OF INCOME-TAX VERSUS ROHINI BUILDERS. [2001 (3) TMI 9 - GUJARAT HIGH COURT] upholding tribunal’s conclusion deleting Section 68 addition - hence the addition is deleted - Decided in favor of assessee. Claim for Depreciation on crimping of yarn - manufacturing activity - Held that:- As in the case of COMMISSIONER OF INCOME-TAX VERSUS EMPTEE POLY-YARN P. LTD. [2008 (2) TMI 313 - BOMBAY HIGH COURT] examined this very question and came to the conclusion that the activity of texturizing and twisting of yarn amounts to manufacturing or article or thing distinct from the original - because in impugned process original commodity loses its identify - thus such activity is held to be manufacturing activity - Decided in favor of assessee.
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