Section 69A Not Applicable to Recorded Bank Loans Tagged as Accommodation Entries: ITAT Mumbai

Joynest Premises Private Limited Vs ACIT (ITAT Mumbai) Section 69A Cannot Apply to Recorded Bank Loan Transactions Merely Because Revenue Labels Them as ‘Accommodation Entries’ – Mumbai ITAT The Mumbai ITAT deleted an addition of ₹1.12 crore made u/s 69A, holding that where loan transactions are fully routed through banking channels and recorded in the regular books of account, Section 69A cannot be invoked merely because the Revenue alleges that the transactions were accommodation entries based on third-party search material. The reassessment arose from a search on the Areion Grou...