Case Law Details
ITO Vs Balwan Singh (ITAT Delhi)
The ruling in the case of ITO vs Balwan Singh, pronounced by the ITAT Delhi, has brought significant attention to the amendments regarding the source of unsecured loans. Effective from April 1, 2023, these changes impact how unsecured loans are to be evaluated and authenticated.
Analysis: The core issue in the case revolved around unsecured loans amounting to Rs. 4,56,50,000/-, with the Revenue questioning the evidence provided by the assessee and the deletion of the addition by the Ld. CIT(A). Several key aspects were examined:
1. Evidence Provided: The Revenue challenged the sufficiency of evidence given by the assessee, especially in light of the remand report from the Assessing Officer.
2. Amendments to Section 68: The amendments brought clarity to the requirement of establishing the source of unsecured loans and will apply from the assessment year 2023-24 onwards.
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