Addition under Section 68 Unjustified Without Falsity in Identity Documents: ITAT Delhi

ACIT Vs Dayal Steel P. Ltd (ITAT Delhi) ITAT Delhi held that AO is not justified in adding unsecured loan received u/s. 68 as AO has rejected the evidences furnished by the appellant without establishing falsity of the documents. Further, documents duly proved identities and source of investors. Facts- The case of the assessee was selected for scrutiny under CASS. During the year, the assessee received unsecured loan from 22 individuals and 3 HUF to the tune of Rs. 2,25,40,000/-. AO held that, the parties do not have creditworthiness to extend unsecured loans to the assessee. Hence, AO held th...