Repayment of Bogus Loans Does Not Cure Section 68 Addition: ITAT Delhi

Global Stainless Vs ACIT (ITAT Delhi) Core Issue: The core issue involved was whether unsecured loans treated as bogus under Section 68 can be accepted as genuine merely because they were routed through banking channels and subsequently repaid, and whether the assessee had discharged the onus of proving identity, creditworthiness, and genuineness of the creditors. Facts :- The assessee, engaged in business, filed its return declaring income of ₹28.60 lakh. During the year, it had recorded unsecured loans aggregating to ₹5.91 crore from two parties, namely M/s Steel Impex (₹3.33 crore app...