Section 68 Cannot be invoked if Creditor’s Identity, Mode of Payment & Repayment proved

Brief of the Case In the case of M/s. Jindal (India) Textiles Vs. ITO the Hon’ble ITAT held that once creditors’ identity, mode of payment and repayment, assessee’s books of accounts proved the impugned credit transactions, it is not appropriate to look through the circumstances and section 68 cannot be invoked. Facts of the Case The assessee-firm trades in textile items. The sole question in the present case is that of addition of Rs.11,90,000/- as unexplained cash credit. The assessee obtained these loans from Shri Kailash Chandra Meena in individual capacity as well as that as an HUF ...