ITAT Raipur deletes Related-Party Loan Addition (Genuineness Proven)

DCIT Vs Agrawal Global Infratech Pvt. Ltd. (ITAT Raipur)

ITAT Raipur held that addition under section 68 towards unsecured loan from related party cannot be sustained since identity, creditworthiness of lender and genuineness of transaction proved. Hence, appeal of revenue dismissed.

Facts- The case of assessee was selected for complete scrutiny through “CASS”. The assessment came to became completed with addition on account of unexplained cash credit u/s 68 for Rs. 9,06,15,711/- and addition u/s 40a(ia) for non-deduction of TDS for Rs. 58,000/-.

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