Mahendra Enterprise Firm Vs ACIT (ITAT Mumbai)
ITAT Deletes Section 68 Addition Because Assessee Repaid Loan With Interest and Deducted TDS; Section 68 Addition Deleted Because Assessee Proved Identity, Creditworthiness and Genuineness: ITAT; ITAT Holds Addition Cannot Survive Because Revenue Relied Only on Suspicion Despite Documentary Evidence; Unsecured Loan Addition Deleted Because Assessee Also Explained Source of Source, Rules ITAT; ITAT Deletes Cash Credit Addition Because Loan Confirmation and Repayment Established Genuineness; Section 68 Addition Unsustainable Because Interest Payment Was Accepted by Revenue: ITAT; ITAT Deletes Rs. 50 Lakh Addition Because Assessee Produced Complete Documentary Evidence; No Section 68 Addition Because Subsequent Loan Repayment Supported Genuine Transaction: ITAT
The appeal before the ITAT Mumbai arose from the order passed by the National Faceless Appeal Centre (NFAC)/Commissioner of Income Tax (Appeals) for Assessment Year 2017-18 relating to an addition made under Section 68 of the Income Tax Act, 1961 in respect of an unsecured loan received by the assessee.
During the relevant assessment year, the assessee had received an unsecured loan of Rs. 50 lakhs from an individual lender, namely Smt. Smita M. Shah. During the assessment proceedings, the assessee furnished documentary evidence to establish the identity and creditworthiness of the lender and the genuineness of the loan transaction. The lender had also confirmed the transaction.
