https://www.taxtmi.com/caselaws?id=354830 Explained that explained credits supported by confirmations, bank statements and remand evidence do not justify additions under section 68 when the assessee establishes identity, genuineness and an acceptable source of funds; the Revenue cannot insist on proof of the source of source where the lending transaction itself is proved. It also states that interest on a term loan used to install machinery in an existing business is a business expenditure, not pre-operative cost, where the borrowing relates to expansion of a running unit. Further, trade creditors for recorded purchases or plant and machinery supplies cannot be treated as unexplained liabilities merely because notices under section 133(6) were not complied with. en-us Tue, 09 Jan 2018 00:00:00 +0530 Mon, 05 Feb 2018 09:02:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=354830 Explained that explained credits supported by confirmations, bank statements and remand evidence do not justify additions under section 68 when the assessee establishes identity, genuineness and an acceptable source of funds; the Revenue cannot insist on proof of the source of source where the lending transaction itself is proved. It also states that interest on a term loan used to install machinery in an existing business is a business expenditure, not pre-operative cost, where the borrowing relates to expansion of a running unit. Further, trade creditors for recorded purchases or plant and machinery supplies cannot be treated as unexplained liabilities merely because notices under section 133(6) were not complied with. Case-Laws Income Tax Tue, 09 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=354830