Addition u/s 68 deleted as genuineness and creditworthiness of lender proved: ITAT Delhi

Trident Towers Pvt. Ltd Vs ACIT (ITAT Delhi)

ITAT Delhi held that addition under section 68 of the Income Tax Act on account of unsecured loan unjustified as assessee has submitted all the requisite documents proving genuineness and creditworthiness of the lender.

Facts- The assessee is a company deriving income from dealing in commodities and letting out of properties. After completion of assessment u/s. 143(1), the assessment of the assessee company was sought to be reopened u/s. 148 based on reason to belief that unsecured loan of Rs. 90 Lakhs received from M/s. Powmex Sales Pvt. Ltd. is liable to added under section 68 of the Income Tax Act.

Conclusion- Held that we have no hesitation to delete the addition made on account of unsecured loan received by M/s. Powmex Sales Pvt. Ltd u/s 68 of the Act by holding that the assessee had proved all the three ingredients of section 68 of the Act by furnishing the requisite documents before the ld AO and the ld AO had not found anything adverse in those documents and had not resorted to any further enquiry on the lender company at the correct address.

FULL TEXT OF THE ORDER OF ITAT DELHI

Please become a Premium member. If you are already a Premium member, login here to access the full content.