https://www.taxtmi.com/caselaws?id=450641 The ITAT Delhi upheld CIT(A)'s decision to delete additions made under Section 68 regarding a loan transaction. The Revenue treated the loan as an accommodation entry due to the lender's non-compliance during original proceedings. However, both parties later provided evidence supporting the transaction's genuineness, including interest payments and partial repayment before search. The ITAT found that identity, creditworthiness, and genuineness were established, noting the AO had accepted other similar transactions from loose papers found during search. The court emphasized that Section 68 additions require incriminating material, which was absent. Additionally, the ITAT upheld deletion of estimated additions for unaccounted sales, ruling that extrapolation without tangible material for the relevant assessment year is impermissible in search assessments. en-us Wed, 06 Mar 2024 00:00:00 +0530 Sat, 09 Mar 2024 13:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450641 The ITAT Delhi upheld CIT(A)'s decision to delete additions made under Section 68 regarding a loan transaction. The Revenue treated the loan as an accommodation entry due to the lender's non-compliance during original proceedings. However, both parties later provided evidence supporting the transaction's genuineness, including interest payments and partial repayment before search. The ITAT found that identity, creditworthiness, and genuineness were established, noting the AO had accepted other similar transactions from loose papers found during search. The court emphasized that Section 68 additions require incriminating material, which was absent. Additionally, the ITAT upheld deletion of estimated additions for unaccounted sales, ruling that extrapolation without tangible material for the relevant assessment year is impermissible in search assessments. Case-Laws Income Tax Wed, 06 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450641