Section 68 addition based on handwritten confirmation of lenders

South Shourne Corporation (India) Vs ACIT (ITAT Ahmadabad) Section 68 addition on basis of handwritten confirmation letters by lenders was not justified in case assessee proved identity, creditworthiness and genuineness. Conclusion: AO was not justified in making addition under section 68 where assessee had furnished evidences such as PAN and copies of bank statements of lenders which proved identity and creditworthiness of lenders and genuineness of impugned loan transactions. Held: Assessee-firm was engaged in the business of Pharmaceuticals. Assessee during the year has taken loans from the...