Unsecured loan addition u/s. 68 quashed as identity, genuineness and creditworthiness proved

DCIT Vs Rathnamma Infratech Private Limited (ITAT Hyderabad)

ITAT Hyderabad held that addition under section 68 towards unexplained cash credits cannot be sustained since assessee has discharged the onus cast upon it and proved identity of loan creditors, genuineness of transactions and creditworthiness of parties. Accordingly, appeal of revenue dismissed.

Facts- During scrutiny assessment, AO concluded that the assessee has failed to prove the genuineness of the transactions and creditworthiness of the persons from whom the loans have taken. Thus, rejected

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