Unsecured Loan Addition Unsustainable Without Contrary Evidence

RK Interiors CFS (India) Private Limited Vs ITO (ITAT Hyderabad) ITAT Hyderabad Deletes Section 68 Addition on Director Loans Routed Through Partnership Firm The Hyderabad Bench of the ITAT allowed the assessee’s appeal and deleted an addition of ₹11.66 crore made under section 68 read with section 115BBE on account of unsecured loans received from directors. The Tribunal held that the assessee had successfully discharged the onus of proving identity, creditworthiness, and genuineness of the transactions. The loans were advanced by the directors out of drawings from a partnership firm (M/s...