https://www.taxtmi.com/caselaws?id=770005 The ITAT Ahmedabad upheld the disallowance of interest on unsecured loans under section 36(1)(iii). While CIT(A) deleted additions under section 68 on technical grounds (loans pertaining to earlier years), interest deduction was denied due to assessee's failure to establish genuineness and creditworthiness of lenders. The tribunal held that deletion of principal addition does not automatically legitimize transactions. Interest deduction requires proof of genuine borrowing and business purpose. Assessee failed to provide evidence of loan repayments or genuine liability subsistence, justifying the disallowance despite banking channels and TDS compliance. en-us Mon, 28 Apr 2025 00:00:00 +0530 Mon, 05 May 2025 08:37:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770005 The ITAT Ahmedabad upheld the disallowance of interest on unsecured loans under section 36(1)(iii). While CIT(A) deleted additions under section 68 on technical grounds (loans pertaining to earlier years), interest deduction was denied due to assessee's failure to establish genuineness and creditworthiness of lenders. The tribunal held that deletion of principal addition does not automatically legitimize transactions. Interest deduction requires proof of genuine borrowing and business purpose. Assessee failed to provide evidence of loan repayments or genuine liability subsistence, justifying the disallowance despite banking channels and TDS compliance. Case-Laws Income Tax Mon, 28 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770005