ITAT Remands Sec 68 Addition; Possible Loan Reclassification to Be Verified, No Automatic Addition

Lords Freight (India) Private Limited Vs ACIT (ITAT Mumbai) The Income Tax Appellate Tribunal Mumbai adjudicated an appeal concerning an addition of ₹23,00,000 made under Section 68 of the Income-tax Act on account of alleged unexplained cash credit. The assessee, engaged in freight services and clearing and forwarding operations, had filed its return declaring nil income under normal provisions and book profits under Section 115JB. During scrutiny, the Assessing Officer observed an increase in unsecured loans from related parties from ₹33,50,000 in the previous year to ₹56,50,000 in the...