https://www.taxtmi.com/caselaws?id=771441 ITAT DELHI allowed the appeal regarding additions under section 68 for unsecured loans. The AO had disallowed loans from a company director and another entity, treating them as unexplained transactions. The tribunal found that the assessee adequately proved identity, creditworthiness, and genuineness of transactions through confirmation letters and bank statements. For the director's loan, the tribunal noted no requirement to establish identity/creditworthiness of a company director, and the running account arrangement demonstrated genuine business purpose. For the other loan, bank transfers and premature closure of term deposits by the lender established legitimacy. The CIT(A) failed to properly appreciate the evidence submitted. en-us Fri, 23 May 2025 00:00:00 +0530 Mon, 26 May 2025 08:52:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771441 ITAT DELHI allowed the appeal regarding additions under section 68 for unsecured loans. The AO had disallowed loans from a company director and another entity, treating them as unexplained transactions. The tribunal found that the assessee adequately proved identity, creditworthiness, and genuineness of transactions through confirmation letters and bank statements. For the director's loan, the tribunal noted no requirement to establish identity/creditworthiness of a company director, and the running account arrangement demonstrated genuine business purpose. For the other loan, bank transfers and premature closure of term deposits by the lender established legitimacy. The CIT(A) failed to properly appreciate the evidence submitted. Case-Laws Income Tax Fri, 23 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771441