Alleged Accommodation Entry Addition deleted Due to Loan Repayment Misclassification

DCIT Vs A P Trading Co. (ITAT Mumbai) The case concerns an appeal filed by the Revenue and a cross-objection by the assessee against the order dated 24 April 2025 passed by the Commissioner of Income Tax (Appeals) for assessment year 2019–20. The Revenue challenged the deletion of an addition of ₹12.69 crore made by the Assessing Officer (AO) under section 68, treating unsecured loans as unexplained cash credits. The Revenue contended that the assessee failed to establish the genuineness of the transactions, creditworthiness of the lender, and the source of funds. It also alleged that the ...