https://www.taxtmi.com/caselaws?id=761326 The ITAT Nagpur dismissed the Revenue's appeal and upheld the CIT(A)'s deletion of additions made by the AO. Regarding unexplained cash credit u/s 68, the Tribunal found the assessee discharged its onus by providing voluminous evidence proving identity, creditworthiness of loan creditors, and genuineness of transactions. The fact that loans were repaid during the relevant and subsequent years supported the deletion. For addition u/s 14A, the Tribunal held that with own funds and non-interest borrowing of Rs. 62.55 crore against investments of Rs. 31.79 crore, no disallowance was warranted. Similarly, interest-free advances of Rs. 17.85 crore could be explained from available funds. The write-off of sundry balances on project abandonment was allowed as business expenditure following established precedents. en-us Fri, 25 Oct 2024 00:00:00 +0530 Fri, 08 Nov 2024 19:58:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761326 The ITAT Nagpur dismissed the Revenue's appeal and upheld the CIT(A)'s deletion of additions made by the AO. Regarding unexplained cash credit u/s 68, the Tribunal found the assessee discharged its onus by providing voluminous evidence proving identity, creditworthiness of loan creditors, and genuineness of transactions. The fact that loans were repaid during the relevant and subsequent years supported the deletion. For addition u/s 14A, the Tribunal held that with own funds and non-interest borrowing of Rs. 62.55 crore against investments of Rs. 31.79 crore, no disallowance was warranted. Similarly, interest-free advances of Rs. 17.85 crore could be explained from available funds. The write-off of sundry balances on project abandonment was allowed as business expenditure following established precedents. Case-Laws Income Tax Fri, 25 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761326