The ITAT held that the addition u/s 68 treating the loan taken ...

Taxpayer's loan treated as income addition deleted; lender genuineness, loan repayment, lack of evidence proved.

December 16, 2024

Case Laws Income Tax AT

The ITAT held that the addition u/s 68 treating the loan taken by the appellant as an accommodation entry was not justified. The key reasons were: 1) There was no evidence that the lender company admitted giving accommodation entries or that the funds were channelized from undisclosed income of the appellant. 2) Repayment of loans by the appellant disproved the allegation of being the final beneficiary. 3) Identity, creditworthiness, and genuineness of borrowings were proved through details and evidence submitted. 4) Denial of cross-examination of witnesses whose statements formed the basis of the addition violated principles of natural justice, making the order a nullity. Consequently, the ITAT deleted the addition made to the appellant's income.

View Source

← Previous Next →

The ITAT held that the addition u/s 68 treating the loan taken ...

Taxpayer's loan treated as income addition deleted; lender genuineness, loan repayment, lack of evidence proved.

December 16, 2024

Case Laws Income Tax AT

You may also like:

Key legal issues and the Tribunal's holdings: Agricultural land sold by assessee situated beyond municipal limits cannot be treated as capital asset u/s 2(14). Addition...

Unexplained cash credits u/s 68 - There is no justification in treating the loans raised by the assessee from the said companies as unexplained cash credits u/s 68 -...

The Appellate Tribunal considered the issue of addition u/s 68 where the income reported in the ITR was deemed too low to support a high amount advanced. The AO did not...

The ITAT Mumbai, in a case involving addition u/s 68 for unexplained cash credit from loans taken from various parties, held that only loans taken during the current...

Addition u/s. 68 - on the amounts received as loan, assessee had paid interest and had also deducted TDS on the interest paid. The factum of lending the money through...

Addition u/s 68 - unsecured loans - The loan transactions are routed through regular banking channels and reflected duly in the annual accounts of the lender company....

Addition u/s 68 of the Income Tax Act. The assessee, who did not maintain books of accounts, received interest-free loans from Shri Anil Kumar Singh through normal...

Addition u/s 68 - proof of identity, creditworthiness and genuineness of the loan obtained - loans have been advanced by the companies through banking channels or from...

Additions towards difference in interest income between interest as per Form 26AS and interest income shown in the Return of Income - Since the alleged accommodation...

Unexplained unsecured loans - the assessee in reply had submitted that the contract can be either verbal or written and simply non availability of a written contract...

Unsecured loans treated as unexplained cash credits u/s 68. Interest paid on such unexplained loans also added to income. Assessee's contention of repayment of loans...

Additions on account of Bogus unsecured loans and bogus share capital money - Revenue argued that the unsecured loan from entities controlled by a hawala operator should...

Addition of unsecured loan u/s 68 - interest free unsecured loan received from a close friend in Dubai to fund ongoing project with a condition that amount will be...

Addition u/s 68 - Creditworthiness of the Loan Lender - Genuineness of the Transaction - The Tribunal set aside the matter to the AO for a thorough examination of the...

Addition u/s 68 - unsecured loans received - sole reason for confirming the addition was low income tax return in the year of issue whereas it was contended that it is...

Quick Updates: