The Revenue contended that the assessee has not shown interest income on loans and advances given to related parties. The Revenue argues that interest @ 12% should be imputed on the average of opening and closing balances of the loans and advances. The assessee, however, contends that the payments are made in congruence to the terms and conditions of the agreements and that no interest income was accrued or received. The ld. CIT(A) verified the assessee’s contention and deleted the addition. The Hon’ble Tribunal observed that the outstanding balances are outcome of the business transactions and not loans and advances and further held that the Assessing officer has erred in imputing an imaginary income which is neither accrued nor has arisen to the Assessee. (AY. 2016 -17)