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2012 (2) TMI 558 - AT - Income TaxAddition u/s 69 - Held that:- In view of the scheme of income tax, no income can be taxed twice, as has been done by the revenue. Firstly, taxing the same income of ₹ 64 lacs in the hands of the company, the present appellant assessee as also in the hand of Shri Gurlal Singh Grewal. We fully agree with the contention raised by the assessee in the matter of taxing single item of income tax twice, is not tenable under the scheme of the Income-tax Act. Therefore, having regard to the findings of the ld. CIT(A) and above discussion, the impugned addition is deleted and ground of appeal of the revenue is dismissed. Addition on account of unaccounted interest income earned - Held that:- In the case of Oswal Spinning Mills, the Hon'ble Punjab & Haryana High Court [2010 (7) TMI 765 - Punjab and Haryana High Court ] held that interest paid on acquisition of machinery, can be treated as part of the cost of machinery. Ld. CIT(A) deleted the impugned addition made by the AO. The ld. CIT(A), on the basis of submission filed before him, held that the appellant had not raised any loan from any bank or any financial institution against installation of machinery during the year under consideration. This contention was also raised before the AO. The AO failed to give specific finding on this aspect and, hence, ld. CI T(A) held that it cannot be presumed that any interest bearing funds, have been invested, in the capital work, in process, shown by the assessee. Ld. CIT(A), found the cases relied upon by the AO as distinguishable, factually and materially. We do not find any infirmity in the findings of the ld. CIT(A) and, hence, findings of the ld. CIT(A) are upheld and ground of appeal raised by the revenue is dismissed. Disallowance of interest u/s 36(1)(iii) - Held that:- Advances by company were out of its own funds of share capital or out of mixed funds, not sufficient to discharge the onus- Decided in favour of revenue
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