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2012 (7) TMI 427

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....tion of Rs.21,70,651/- made by the Assessing Officer. 2. You Appellant submits that on facts of the case and provisions of Law Sec. 36(1)(iii) does not apply and that loan to "Sister Concern" even out of borrowed funds is not liable to be disallowed and further that the CIT(A) has erred in confirming disallowance without proving the "nexus" of Interest Free Loan available and Interest Free loans given. 3. Without prejudice, it is submitted by your Appellant that the CIT(A) has erred in confirming the amount of disallowance of Rs.21,70,651/- disregarding that Interest if at all liable to be disallowed is interest on Net Current years Advances given calculated on "Product basis" only." 2. All these grounds of appeal are against confirming ....

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....the books of account were seized. It is important to note that the appellant submitted a copy of ledger account in its books of account during the appellate proceedings to claim the opening balance as well as advance of loan during the year. But, when further details to verify the genuinenity of such claims were asked that too based on appellant's own financial accounts notes showing discrepancies, the appellant has shown its inability to produce or submit the same. Further, to appreciate the ratio of Hon'ble Supreme Court judgement in the case of S.A. Builder Ltd. vs. CIT, 288 ITR 1 as heavily relied upon by appellant, the appellant failed to submit the details/explanation in respect of purpose and final utilization of advance so granted t....