Transaction Genuine under section 68 if Loan Repaid with Interest: ITAT Delhi

Real Innerspring Technologies Pvt. Ltd Vs ACIT (ITAT Delhi)

ITAT Delhi held that addition under section 68 of the Income Tax Act towards unsecured loan is not sustainable since the loan taken was repaid by assessee before the reopening of assessment. Held that transaction is genuine when loan is taken and the same is repaid with interest.

Facts- During the course of assessment, AO observed that assessee has taken entry of Rs. 50 Lakhs from Shri Himanshu Verma who is engaged in providing accommodation entries to various beneficiaries. Accordingly, AO formed a

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