ITAT Slams ₹120 Crore Section 68 Addition on Fintech Giant: AO Cannot Ignore Evidence & Make Mechanical Additions

Cashfree Payment India Private Limited Vs DCIT (ITAT Bangalore) In a major relief to Cashfree Payments India Private Limited, the Bangalore ITAT held that once an assessee furnishes substantial evidence proving the identity, genuineness and creditworthiness of the lender, the AO cannot make a mechanical addition under section 68 merely because the lender’s balance sheet was not produced. The assessee had raised ₹120 crores through secured Redeemable NCDs from Trifecta Venture Debt Fund, a SEBI-registered Category II AIF. The Tribunal noted that the assessee had produced the lender’s PAN,...