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2022 (2) TMI 1198 - AT - Income TaxAddition u/s 68 - unexplained cash credit - HELD THAT:- The return for a negligible taxable income filed by the depositors which creates doubt about the genuineness of the transaction. CIT – A noted a peculiar aspect that the above sum of ₹ 7.86 crores were invested in lot of ₹ 20 lakhs which clearly shows that the initially funds were received as an advance but a letter on treated as preferential capital. The terms and conditions of the preferential capital whether those are redeemable, rate of dividend, nature of cumulative or non-cumulative dividend was not at all forthcoming - uncontroverted findings of the lower authorities and absence of the assessee to produce any further evidence , despite repeated opportunities of hearing , we confirm the finding of the learned CIT- A wherein the addition made by the learned assessing officer under section 68 is made. In view of this, ground No. 1 of the appeal is dismissed. Set off of unabsorbed business losses and unabsorbed depreciation - HELD THAT:- We fully agree with the findings of the CIT – A that the provisions of section 72 speaks about setting off of brought forward business losses against business income only and as the above sum of ₹ 7.86 crores has been taxed u/s 68 of the act, same cannot be said to be a business income and therefore the brought forward business losses cannot be allowed to be set off against that addition stop similarly is the case for the set off of unabsorbed depreciation under section 32 - In view of this we do not find any infirmity in the order of the CIT- A in confirming the action of the learned assessing officer in not allowing set off of business losses carried forward and unabsorbed depreciation against the above addition. Accordingly ground No. 2 of the appeal is dismissed.
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