Section 68 addition for unsecured loans deleted where banking records and lender returns supported genuineness of transactions.

Unsecured loans received and repaid through banking channels, supported by bank statements and the lender's income-tax returns, were held to satisfy the Tribunal that the section 68 addition was not justified. Relying on jurisdictional precedents, the HC found no substantial question of law arising from the Tribunal's order. The deletion of the addition was therefore upheld and the Revenue's challenge failed.

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Issues: Whether the Tribunal was justified in deleting the addition made under section 68 of the Income-tax Act, 1961 on account of unsecured loans received from Prraneta Industries Ltd., where the loan was received and repaid through banking channels and the Revenue did not dispute repayment.

Analysis: The Tribunal found that the assessee had received the amount by cheque and had repaid it through banking channels. It also noted the relevant bank statements and the lender's income-tax returns. In these circumstances, and in light of the jurisdictional precedents relied upon by the Tribunal, the Court held that no substantial question of law arose from the Tribunal's order.

Conclusion: The deletion of the addition under section 68 was upheld and the Revenue's challenge failed.

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