1.A.O. noted that electricity repair and maintenance expenses has been claimed at Rs. 1,53,072/- in the P & L A/c. The details of these expenses were filed and perused by the A.O. It revealed that most of the expenses have been incurred for purchase of tube rods, electrical wires, condensers, capacitors etc. The A.O. noted that these items are of enduring nature and cannot be termed as consumables and rather in the nature of capital items. The A.O. allowed 10% depreciation on the same and made the addition of Rs. 1,37,765/-. The Ld. CIT(A) confirmed the addition The assessee has rightly treated the same as revenue expenditure. The A.O. has not pointed-out as to which capital have been generated by the assessee for purchasing tube rods, electrical wires etc. In the absence of any specific finding against the assessee, we set aside the Orders of the authorities below and delete the addition of Rs. 1,37,765/- made by the A.O. 2.he A.O. directed the assessee to explain as to why car running and telephone expenses be not subjected to disallowance as the quantum of personal expenses under these heads cannot be ascertained as per the audited report. The assessee stated that there is no personal expenses on account of car running and telephone expenses. The A.O. however, noted that in the absence of any cogent reply from the assessee and any log book for maintenance of the car having been maintained or produced, 50% of the said expenses were disallowed and made addition of Rs. 1,81,937/-. The Ld. CIT(A) on the same reasoning dismissed this ground of appeal of assessee. It appears to be an adhoc addition made by the A.O. without pointing out any specific inadmissible expenses incurred by the assessee. In this view of the matter, we set aside the Orders of the authorities below and delete the entire addition. Ground No.2 of cross objection of the assessee is allowed. 3.The A.O. noted that during the year assessee-company received loan of Rs. 1,44,95,000/- from M/s. Shivam International Limited. The assessee-company was asked to produce copy of the income tax return, copy of the balance-sheet and bank account to justify the genuineness and creditworthiness of the loan. In response to the above, assessee-company has produced the copy of the ITR and the balance-sheet of the lender. On perusal of the balance-sheet of the lender company, it emerges that Share Capital is of Rs. 73.86 lakhs, Reserve and Surplus (-) Rs. 15 lakhs, Long Term borrowings Rs. 2.26 crores, Trade Payables Rs. 2.46 lakhs and the income returned is zero. The A.O, therefore, noted that from these financial statistics, creditworthiness of the lender company, prima facie is crystal clear and require no more comments. The transactions in the bank statement of the lender company shows entries in round and big figures looking like an entry provider. When a company itself is surviving on borrowed funds to run its own business and in losses, how it can afford to lend its finances to some other concern ? The A.O. accordingly, made addition under section 68 of the I.T. Act. assessee produced documentary evidence to prove the identity of the investor company which is a registered company and assessee filed confirmation, income tax return, copy of bank statement and balance-sheet to prove ingredients of Section 68 of the I.T. Act. The Investor is a registered company and has complied with the provisions of Companies Act. The assessee produced evidence of creditworthiness of the investor company as well as genuineness of the transaction in the matter thuson basis of explanation of assessee and material on record, deleted the entire addition