Unsecured Loan Addition deleted by ITAT Citing Adequate Evidence & Repayment

DCIT Vs Cloud 9 Infraspace LLP (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT) Ahmedabad dismissed the Revenue’s appeal, upholding the Commissioner of Income Tax (Appeals)’s (CIT(A)) decision to delete an ₹86 lakh addition to Cloud 9 Infraspace LLP’s income for the Assessment Year 2018-19. The Assessing Officer (AO) had initially disallowed ₹11.20 crore in unsecured loans, citing concerns about the creditworthiness and genuineness of 17 lenders. However, during remand proceedings, the AO accepted the genuineness of loans totaling ₹10.34 crore, leaving only ₹...