https://www.taxtmi.com/caselaws?id=445750 The ITAT Indore ruled in favor of the assessee regarding an addition made by the AO for a loan given by the assessee. The tribunal held that under the Income Tax Act, additions can be made for bogus loans taken by a person, but not for bogus loans given. If a loan from X to Y is found bogus, the department can make additions in Y's hands, not X's. The assessee successfully demonstrated that prior withdrawals from the same bank account provided sufficient funds for re-deposit before giving the loan. The tribunal directed the AO to delete the addition. en-us Tue, 31 Oct 2023 00:00:00 +0530 Sat, 18 Nov 2023 08:40:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445750 The ITAT Indore ruled in favor of the assessee regarding an addition made by the AO for a loan given by the assessee. The tribunal held that under the Income Tax Act, additions can be made for bogus loans taken by a person, but not for bogus loans given. If a loan from X to Y is found bogus, the department can make additions in Y's hands, not X's. The assessee successfully demonstrated that prior withdrawals from the same bank account provided sufficient funds for re-deposit before giving the loan. The tribunal directed the AO to delete the addition. Case-Laws Income Tax Tue, 31 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445750