Unsecured Loan Addition U/s 68 Deleted; Banking Repayment & Identity Proved, No Need to Prove Source of Source – ITAT Ahmedabad

Kalptaru Cotton Industries Vs ITO (ITAT Ahmedabad) Unsecured Loan Addition U/s 68 Deleted – Repayment Through Banking Channel & Established Identity Sufficient – No Need to Prove Source of Source – ITAT Ahmedabad The AO made addition of ₹60 lakh u/s 68 treating unsecured loan received from M/s Bileshwar Auto Agency as unexplained. Though CIT(A) accepted identity of lender and genuineness of transaction, he sustained addition on the ground that creditworthiness was not fully proved since funds were credited into lender’s bank account just before advancing the loan. ITA...