Repayment of Loans with TDS Negates Accommodation Entry Allegation: ITAT Delhi

ITO Vs Mundra Agencies Private Limited (ITAT Delhi) Section 68 Deletion Upheld – Repayment of Loans with TDS Negates Accommodation Entry Allegation The Delhi ITAT dismissed the Revenue’s appeal and upheld the deletion of addition of ₹2.07 crore made under Section 68 on account of alleged accommodation entries received by the assessee company. The Tribunal noted that the assessee had received loans from four entities and had fully repaid the loans along with interest after deducting TDS through banking channels, a fact not disputed by the Revenue. Relying on the Gujarat High Court decisio...