2011 (4) TMI 1458

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.... D. K. Srivastava (Accountant Member) The appeal filed by the assessee is directed against the order passed by the ld. CIT(A) on 1.11.2010, on the following grounds: "1 The ld. CIT(A) has erred in sustaining the addition of Rs. 6,00,000/- as notional interest on advance of Rs. 25 lacs each to Shri Ashok Anand and Mrs. Rani Anand, being in violation of Sec 36(iii) of Income-tax Act. The....

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....ons of the parties, we find that it is an admitted position that the amount was advanced for acquisition of new asset which was claimed to be for the furtherance of the business activity of the assessee before us. Admittedly the amount was not advanced as a loan and we find no merit in the orders of authorities below in applying the ratio laid by the Hon'ble Punjab & Haryana High Court in the ....

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....ground No. 2, the Authorized Representative for the assessee submitted that the assessee had running an account with National Fertiliser Ltd. He fairly stated that there were differences in the balances appearing in books viz-a-viz those books of National Fertilisers Ltd. The assessee wants to conceal the aforesaid differences. In this view of the matter, the issue is restored to the file of AO. T....