Addition u/s. 68 deleted as nature and source of credit explained: ITAT Surat

Prarthana Gems Vs DCIT (ITAT Surat) ITAT Surat held that addition under section 68 of the Income Tax Act deleted since appellant has satisfactorily explained the nature and source of the credit. Accordingly, appeal allowed and addition deleted. Facts- During the year, the assessee derived income from the business of importing, exporting, processing and trading of rough and polished diamonds. The assessee had obtained loans and deposits from 5 persons amounting to Rs.3,45,00,000/- including Rs.25,00,000/- from Mr. Rafique Peer Mohammad during the year. The AO had received replies from four cred...