Interest on loan cannot be treated as unexplained

Sathyanarayanan Radhika Vs ACIT (ITAT Chennai)

ITAT noted that the loan amount of Rs. 1.25 Crores was taken in previous year from Shri R. Sathyanarayanan and the balance amount of Rs. 17,00,690/- was interest on the loan amount and this cannot be treated as unexplained and moreover, there is no failure of the provisions of s. 269SS of the Act, because the assessee has not received any cash loan. Hence, we quash the revision order and allow the appeal of the assessee.

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