Unsecured Loans Through Banking Channels Accepted; Section 68 Addition of ₹2.87 Cr Deleted

ACIT Vs Singhania Alu Foil Containers Manufacturing Company (ITAT Delhi)

The Assessing Officer had added ₹2.87 crore under section 68 treating unsecured loans from three parties as unexplained cash credits. The CIT(A), after calling for a remand report and examining confirmations, PAN details, bank statements of lenders and the assessee, and evidence of repayment through banking channels, deleted the addition holding that identity, creditworthiness and genuineness stood proved.

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