https://www.taxtmi.com/caselaws?id=311010 The ITAT Mumbai ruled in favor of the assessee regarding addition under Section 68 for unexplained loans. The AO had made additions claiming the assessee failed to prove identity, genuineness and creditworthiness of loan creditors, noting creditors were not found at given addresses and showed nominal income. However, the ITAT found the assessee had discharged the initial burden by providing confirmation letters, income tax returns, bank statements of all creditors, and evidence that loans were given by cheque. Trustees appeared before AO under Section 131 admitting loan advances. The ITAT held that once the three ingredients are proved, the burden shifts to the AO to prove otherwise, and the AO cannot make additions once the assessee discharges initial burden. en-us Wed, 14 Jun 2017 00:00:00 +0530 Sat, 02 Dec 2023 08:46:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=311010 The ITAT Mumbai ruled in favor of the assessee regarding addition under Section 68 for unexplained loans. The AO had made additions claiming the assessee failed to prove identity, genuineness and creditworthiness of loan creditors, noting creditors were not found at given addresses and showed nominal income. However, the ITAT found the assessee had discharged the initial burden by providing confirmation letters, income tax returns, bank statements of all creditors, and evidence that loans were given by cheque. Trustees appeared before AO under Section 131 admitting loan advances. The ITAT held that once the three ingredients are proved, the burden shifts to the AO to prove otherwise, and the AO cannot make additions once the assessee discharges initial burden. Case-Laws Income Tax Wed, 14 Jun 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=311010