Section 68 unsecured loan addition fails where lender identity, creditworthiness, and genuineness are properly supported.

Unsecured loan credits were accepted as explained where the assessee furnished confirmations, bank statements, PAN details, returns and audited financials to establish the lender's identity, creditworthiness and the genuineness of the transaction. The lender was also treated as a registered NBFC engaged in finance business, and the Tribunal followed a coordinate bench decision on identical facts that had already rejected the same basis used by the lower authorities. On that footing, the addition under section 68 was held unsustainable, and the consequential application of section 115BBE also failed.

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Issues: Whether the addition made under section 68 in respect of unsecured loan from Sundaram Consultants Pvt. Ltd. and the consequential application of section 115BBE were sustainable.

Analysis: The assessee produced confirmations, bank statements, PAN details, ITRs and audited financials to establish the identity and creditworthiness of the lender and the genuineness of the loan transaction. The lender was also shown to be a registered NBFC carrying on finance business, and the Tribunal noted that in a connected matter involving identical lender and similar facts, the addition had been deleted by the coordinate bench. The basis adopted by the lower authorities was found to be identical to the basis already disapproved in that connected decision.

Conclusion: The addition under section 68 was not sustainable, and the consequential application of section 115BBE also did not survive. The loan amount of Rs. 1,50,00,000 was deleted in favour of the assessee.

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