Loan Repayment Not Unexplained Cash Credit: ITAT Upholds Deletion of Addition

DCIT Vs New Charan Kanwal Finance Company Pvt. Ltd. (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT), Kolkata, on June 23, 2025, dismissed an appeal filed by the Revenue, upholding the deletion of an addition of ₹31.15 lakh made under Section 68 of the Income Tax Act, 1961, as unexplained cash credit. The ruling in the case of DCIT Vs New Charan Kanwal Finance Company Pvt. Ltd. for Assessment Year 2020-21 confirmed that the amount in question represented a genuine loan repayment received through proper banking channels, rather than an unexplained cash credit. The case originated from ...