https://www.taxtmi.com/caselaws?id=751746 ITAT Delhi held that addition u/s 68 regarding unsecured loan was unjustified. The assessee received loan from a trading firm for business expansion into denim cloth production. The lender's partner was examined u/s 131(1A) and explained cash deposit sources from daily sales. Revenue had accepted these sources during lender's scrutiny assessment without making additions. Since all three ingredients of section 68 were satisfied - identity, creditworthiness, and genuineness of transaction - the loan could not be treated as unexplained cash credit. Consequential interest deduction u/s 36(1)(iii) was also allowed. en-us Fri, 19 Apr 2024 00:00:00 +0530 Wed, 24 Apr 2024 06:29:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751746 ITAT Delhi held that addition u/s 68 regarding unsecured loan was unjustified. The assessee received loan from a trading firm for business expansion into denim cloth production. The lender's partner was examined u/s 131(1A) and explained cash deposit sources from daily sales. Revenue had accepted these sources during lender's scrutiny assessment without making additions. Since all three ingredients of section 68 were satisfied - identity, creditworthiness, and genuineness of transaction - the loan could not be treated as unexplained cash credit. Consequential interest deduction u/s 36(1)(iii) was also allowed. Case-Laws Income Tax Fri, 19 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751746