https://www.taxtmi.com/caselaws?id=766388 The ITAT Mumbai dismissed the AO's addition under section 68 regarding unsecured loans received by the assessee. The AO alleged that lending entities engaged in circular trading and bank fraud through LC facilities, but simultaneously accepted these entities' business income by applying profit rates on their declared sales. The ITAT held that once the AO accepted the source of loans in the lenders' cases without finding them bogus or assessing deemed income, addition under section 68 was unjustified. No evidence showed accommodation entries, cash trails, or unaccounted money involvement. The CIT(A)'s deletion of the addition was confirmed. en-us Tue, 07 Jan 2025 00:00:00 +0530 Sat, 16 May 2026 10:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766388 The ITAT Mumbai dismissed the AO's addition under section 68 regarding unsecured loans received by the assessee. The AO alleged that lending entities engaged in circular trading and bank fraud through LC facilities, but simultaneously accepted these entities' business income by applying profit rates on their declared sales. The ITAT held that once the AO accepted the source of loans in the lenders' cases without finding them bogus or assessing deemed income, addition under section 68 was unjustified. No evidence showed accommodation entries, cash trails, or unaccounted money involvement. The CIT(A)'s deletion of the addition was confirmed. Case-Laws Income Tax Tue, 07 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766388