Loan taken and repaid through banking channels cannot be added u/s. 68: ITAT Ahmedabad

F.M. Amin Co (Dashrath) Vs Assessment Unit (ITAT Ahmedabad)

ITAT Ahmedabad held that addition towards unexplained cash credit under section 68 of the Income Tax Act not justified since loan transactions were done through banking channels and loans were repaid in short period. Accordingly, addition deleted.

Facts- The assessee is a firm and dealer of Hindustan Petroleum for sale of petrol, diesel and CNG, etc. The return of the assessee was taken for scrutiny assessment. The assessee has shown unsecured loans from Shri Pravinbhai Mav

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