https://www.taxtmi.com/caselaws?id=450467 ITAT Jodhpur allowed the assessee's appeal against addition under Section 68 for unexplained creditor. The AO had disbelieved the loan and treated it as unexplained cash credit based on cash deposits by the creditor. The tribunal held that the assessee established creditor's identity through PAN card and affidavit, transaction genuineness through account payee cheque, and creditor's capacity was explained as sales proceeds from business. Following jurisdictional HC precedents, when identity and genuineness are established, creditor's capacity need not be proven by assessee. The addition was deleted as AO's action was based on mere suspicion without clinching evidence. en-us Thu, 29 Feb 2024 00:00:00 +0530 Tue, 05 Mar 2024 12:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450467 ITAT Jodhpur allowed the assessee's appeal against addition under Section 68 for unexplained creditor. The AO had disbelieved the loan and treated it as unexplained cash credit based on cash deposits by the creditor. The tribunal held that the assessee established creditor's identity through PAN card and affidavit, transaction genuineness through account payee cheque, and creditor's capacity was explained as sales proceeds from business. Following jurisdictional HC precedents, when identity and genuineness are established, creditor's capacity need not be proven by assessee. The addition was deleted as AO's action was based on mere suspicion without clinching evidence. Case-Laws Income Tax Thu, 29 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450467