Repaid Loan with TDS-Proved Interest Cannot Be Treated as Unexplained Cash Credit: ITAT Indore

Neeta Choudhary Vs ITO (ITAT Indore) The Indore Bench of the ITAT allowed the assessee’s appeal for AY 2017-18 and deleted the addition of ₹5 lakh made under section 68 read with section 115BBE in respect of an unsecured loan. The Tribunal observed that the Assessing Officer had inconsistently accepted nine subsequent loan transactions aggregating to ₹3.35 lakh from the same lender while treating only the first loan of ₹5 lakh as unexplained, without any cogent justification. The Tribunal noted that the assessee had regularly paid interest on the loan, deducted and deposited TDS, and u...