https://www.taxtmi.com/caselaws?id=773682 The Tribunal remanded an appeal concerning Rs. 52,00,000 addition under section 68 of Income Tax Act, 1961 for unsecured loans. The Tribunal held that lower authorities erred in applying "source of source" inquiry to unsecured loans and made additions based on conjecture rather than cogent material. While the assessee produced certain documents including bank statements and ledger accounts, the AO and CIT(A) found them incomplete and suspected the lender was a dummy company. The Tribunal directed fresh adjudication by CIT(A) after complete documentation, emphasizing that section 68 requires proof of identity, creditworthiness and genuineness but not tracing lender's fund sources. The appeal was allowed for statistical purposes pending fresh consideration. en-us Thu, 22 May 2025 00:00:00 +0530 Thu, 26 Jun 2025 08:36:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773682 The Tribunal remanded an appeal concerning Rs. 52,00,000 addition under section 68 of Income Tax Act, 1961 for unsecured loans. The Tribunal held that lower authorities erred in applying "source of source" inquiry to unsecured loans and made additions based on conjecture rather than cogent material. While the assessee produced certain documents including bank statements and ledger accounts, the AO and CIT(A) found them incomplete and suspected the lender was a dummy company. The Tribunal directed fresh adjudication by CIT(A) after complete documentation, emphasizing that section 68 requires proof of identity, creditworthiness and genuineness but not tracing lender's fund sources. The appeal was allowed for statistical purposes pending fresh consideration. Case-Laws Income Tax Thu, 22 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773682