Charitable registration turns on predominant purpose and genuine activities, while incidental fees and related-party rent require supporting adverse m...
MAT book-profit adjustments exclude disallowances for exempt-income expenditure and demerger expenditure unless expressly listed under the statutory c...
Omitted specified domestic transaction provision invalidates related-party expenditure transfer-pricing references and assessments based on consequent...
The ITAT Mumbai, in a case involving addition u/s 68 for unexplained cash credit from loans taken from various parties, held that only loans taken during the current assessment year are relevant for consideration. Continuing loans from earlier years are not relevant for the current assessment year if additions were already made in those years. The genuineness of transactions u/s 68 needs to be proven only for credits recorded in the current assessment year. Repayment of loans taken during the current year demonstrates genuineness. The assessee provided relevant documents to prove transactions, and the AO's reliance on survey reports to analyze creditworthiness was deemed insufficient. The ITAT concluded that loans were taken and repaid through banking channels, and directed the AO to delete the proposed additions. The assessee's ground was allowed.
The ITAT Mumbai, in a case involving addition u/s 68 for unexplained cash credit from loans taken from various parties, held that only loans taken during the current assessment year are relevant for consideration. Continuing loans from earlier years are not relevant for the current assessment year if additions were already made in those years. The genuineness of transactions u/s 68 needs to be proven only for credits recorded in the current assessment year. Repayment of loans taken during the current year demonstrates genuineness. The assessee provided relevant documents to prove transactions, and the AO's reliance on survey reports to analyze creditworthiness was deemed insufficient. The ITAT concluded that loans were taken and repaid through banking channels, and directed the AO to delete the proposed additions. The assessee's ground was allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4801
Join Channel
TaxTMI 
