Section 68 unsecured loan addition fails where identity, bank trail and repayment evidence discharge the assessee's onus.

Unsecured loan credits were found unsustainable under section 68 where the assessee furnished identity particulars, PAN, confirmations, bank statements, affidavits and proof of repayment. The documentary record showed lender identity, banking channel movement of funds and subsequent repayment, and there was no adverse material to prove the transactions were sham. The primary onus under section 68 was therefore discharged, and the mere similarity in affidavits or absence of further inquiry did not justify the addition, which was deleted.

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Issues: Whether the addition made under section 68 on account of unsecured loans was sustainable when the assessee furnished identity particulars, PAN, confirmations, bank statements, affidavits and proof of repayment.

Analysis: The assessee produced documentary material to establish the identity of the lenders, the movement of funds through banking channels, and repayment in the subsequent year. The record did not show any adverse material disproving the confirmations or showing that the transactions were sham. In these circumstances, the primary onus under section 68 stood discharged, and the mere observation of uniformity in affidavits or the absence of further inquiry was insufficient to sustain the addition.

Conclusion: The addition under section 68 was not justified and had to be deleted.

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