Protective Addition on Loan from Director Unjustified, No Link to Assessee's Income; Favorable Ruling for Assessee.

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....The ITAT Kolkata held that the addition on a protective basis made by the Assessing Officer in the hands of the assessee, concerning a loan received from a director and relatives, was not sustainable. The LTCG earned by the loan creditors from share transactions in penny stock companies was the subject of substantive additions in the creditors' cases. Three creditors accepted the additions and paid taxes under Vivad Se Viswas Scheme, explaining the source of the loan as unaccounted income. The 4th creditor, also an Income Tax assessee, had the addition made in their case. As there was no allegation that the creditor's income/LTCG was linked to the assessee's unexplained income, and with the assessment of the other 3 creditors being time-bar.........