Unexplained cash credits rejected where earlier coordinate-bench rulings on the same group concerns supported the loan explanation.

Loan credits received from two group companies were examined under section 68 read with section 115BBE, and the Tribunal held that they could not be taxed as unexplained cash credits on the record before it. It followed its earlier coordinate-bench decisions involving the same group concerns and applied the same reasoning to the present facts. The addition was therefore deleted and the assessee's explanation for the credits was accepted.

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Issues: Whether the addition of Rs. 78,00,000/- made under section 68 read with section 115BBE of the Income-tax Act, 1961, in respect of the loan credits received from the two companies was sustainable.

Analysis: The Tribunal found that the assessee's credit entries were covered by its earlier decisions involving the same group concerns and the same line of reasoning. On the record before it, the Tribunal held that the loan credits of Rs. 78,00,000/- could not be brought to tax as unexplained cash credits. The Tribunal therefore accepted the assessee's contention and applied its prior coordinate-bench view to the present facts.

Conclusion: The addition of Rs. 78,00,000/- was deleted and the issue was decided in favour of the assessee.

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