https://www.taxtmi.com/caselaws?id=796740 Section 68 requires an assessee to establish the creditor's identity and creditworthiness and the genuineness of the credit transaction. Corporate status, PAN and address may establish identity, but do not by themselves prove capacity to advance funds. Repayment within the same year also does not establish genuineness where the business purpose for the advance is not demonstrated and funds are placed in short-term deposits before repayment with a mark-up. Explanations concerning unavailable records or a director's circumstances do not replace evidence of the creditor's capacity, transaction purpose and genuineness. On these facts, the related-party advance remained unexplained and the addition was restored. en-us Tue, 14 Jul 2026 00:00:00 +0530 Mon, 10 Aug 2026 08:37:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796740 Section 68 requires an assessee to establish the creditor's identity and creditworthiness and the genuineness of the credit transaction. Corporate status, PAN and address may establish identity, but do not by themselves prove capacity to advance funds. Repayment within the same year also does not establish genuineness where the business purpose for the advance is not demonstrated and funds are placed in short-term deposits before repayment with a mark-up. Explanations concerning unavailable records or a director's circumstances do not replace evidence of the creditor's capacity, transaction purpose and genuineness. On these facts, the related-party advance remained unexplained and the addition was restored. Case-Laws Income Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796740