Assessee proves identity & creditworthiness of lender: Upholds deletion of Addition

DCIT Vs Thirumalai Marketing & Investments Limited (ITAT Mumbai)

Revenue filed appeals before ITAT challenging the order of CIT(A) which had deleted an addition of ₹5 crore made u/s 68 , treating it as unexplained cash credit & Quashed a penalty of ₹1.62 crore imposed u/s 271(1)(c) for furnishing inaccurate particulars of income.Background:

Assessee is a registered NBFC. During a search on a third party, it was discovered that the assessee had advanced a loan of ₹6 crore, sourced mainly from ₹5 crore received as share applica

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