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2018 (7) TMI 215 - AT - Income TaxAddition u/s 56(2)(vii)(a) - assessee has claimed to have received a loan - AO was of the opinion that the agreement in this regard was not proper agreement - Held that:- As noted by the ld. Commissioner of Income Tax (Appeals), the amount received from the M/s. San Finance Corporation by the assessee fully qualifies as loan. The M/s. San Finance Corporation has shown the same amount as loan in its balance sheet, the same has been duly accepted by the Revenue. As a matter of fact, in the hands of M/s. San Finance Corporation, the assessing officer has disallowed 12% on the interest-free loan given by the M/s. San Finance Corporation to various persons including the assessee. Commissioner of Income Tax (Appeals) is quite correct in holding that Revenue cannot take contradictory stands. In the case of the M/s. San Finance Corporation, it has held that the same is loan. When such a stand has been taken, the Revenue cannot take up a contrary stand and treat the same loan in the hands of the assessee as a gift or a sum received without consideration taxable under section 56(2)(vii)(a) of the Act. See THE COMMISSIONER OF INCOME TAX VERSUS MR. CHANDRAKANT H. SHAH [2010 (9) TMI 1221 - BOMBAY HIGH COURT - Decided in favour of assessee
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