https://www.taxtmi.com/caselaws?id=773869 ITAT Mumbai dismissed revenue's appeal regarding Section 68 loan additions. The tribunal held that regular transactions between assessee and lender companies, supported by ledger accounts and bank statements, established genuineness. AO failed to properly verify creditworthiness by examining overall fund availability rather than relying solely on net income. Since assessee proved identity and creditworthiness of lenders, and transactions showed regular lending-borrowing pattern with an NBFC, additions were unjustified. However, commission expenses matter was remanded to AO for proper verification. One loan case involving Rs. 30 lakhs was also restored for fresh examination with additional PAN evidence. Regarding Section 35D disallowance, tribunal upheld CIT(A)'s deletion following SC precedent in General Insurance Corporation case, ruling that bonus share issuance through capitalization of reserves doesn't constitute fresh capital inflow warranting deduction. en-us Tue, 22 Oct 2024 00:00:00 +0530 Mon, 21 Jul 2025 10:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773869 ITAT Mumbai dismissed revenue's appeal regarding Section 68 loan additions. The tribunal held that regular transactions between assessee and lender companies, supported by ledger accounts and bank statements, established genuineness. AO failed to properly verify creditworthiness by examining overall fund availability rather than relying solely on net income. Since assessee proved identity and creditworthiness of lenders, and transactions showed regular lending-borrowing pattern with an NBFC, additions were unjustified. However, commission expenses matter was remanded to AO for proper verification. One loan case involving Rs. 30 lakhs was also restored for fresh examination with additional PAN evidence. Regarding Section 35D disallowance, tribunal upheld CIT(A)'s deletion following SC precedent in General Insurance Corporation case, ruling that bonus share issuance through capitalization of reserves doesn't constitute fresh capital inflow warranting deduction. Case-Laws Income Tax Tue, 22 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773869