No addition with regard to closing balance of old loan can be made u/s. 68: ITAT Surat

ITO Vs Mahavir Corporation (ITAT Surat)

ITAT Surat held that no addition with regard to closing balance of old loan can be made under section 68 of the Income Tax Act. Accordingly, addition u/s. 68 to that extend is liable to be deleted.

Facts- Case of the assessee was selected for scrutiny. Accordingly, AO treated unsecured loan of Rs. 4.96 crores as non-genuine and added under Section 68 of the Income tax Act, 1961.

CIT(A) confirmed the addition to the extent of Rs.1.42 crores and remaining addition of Rs.3.35 crores, which was closing balance of lo

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