Section 68 addition cannot be made merely for Low Income of Creditor

Carissa Investment (P) Ltd. Vs ACIT (ITAT Delhi) In this case assessee-company has been able to prove that both the creditors have availability of sufficient funds to give loan to the assessee-company in assessment year under appeal. Merely because income was low declared by both the creditors, is no ground to make the impugned addition against the assessee-company. Considering the totality of the facts and circumstances of the case, it is clear that in the ledger account of both the creditors there are loans given to the assessee-company as well as assessee paid back the amounts to them. The ...