No Section 68 Addition Where Loan Repaid Through Banking Channels & Supported by Evidence

DCIT Vs Golfgreen Infra Pvt. Ltd. (ITAT Delhi) The appeals arose from two assessment years involving disallowance of interest under Section 36(1)(iii) and addition under Section 68 of the Income Tax Act, 1961. The Revenue challenged the deletion of disallowances made by the Assessing Officer (AO), while the assessee also filed cross-objections. For Assessment Year 2015–16, the core issue was disallowance of interest on the ground that the assessee had advanced interest-free loans to its sister concern using borrowed funds. The AO presumed diversion of borrowed funds and computed disallowance...