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No Condition in Section 68 on Loan Source from Current Year’s Taxable Income
Case Law Details
- Case Name
- ACIT Vs Prayag Polytech Pvt. Ltd. (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2014-15
- Courts
- All ITAT, ITAT Delhi
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ACIT Vs Prayag Polytech Pvt. Ltd. (ITAT Delhi)
ITAT Held that there is no such condition in section 68 that loan can only be advanced out of the taxable income of the current year. The requirement of section 68 are 3 i.e. identity, creditworthiness and genuineness. In the present case admittedly there is no doubt about the identity. As regards the creditworthiness the AO has gone with the presumption that it is only the current year taxable income which can establish the creditworthiness. This presumption of the AO is in-correct. The creditworthiness can be established by showing the source fr...
