Tribunal Overturns Reassessment: Evidence Proves Legitimate Loan, Invalidating Assumptions of Unexplained Cash Credit.

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....Reassessment proceedings were challenged regarding unexplained cash credit u/s 68 for an unsecured loan. The loan was treated as bogus based on a statement by Mukesh Banka. However, the appellant submitted supporting documents, including bank statements, proving the genuineness of the loan transaction. The authorities rejected these documents without proper verification, relying solely on assumptions and probabilities. The Tribunal held that documents cannot be discarded without examining their genuineness, especially when they clearly demonstrate a genuine transaction through banking channels. The loan was duly repaid, and no transaction occurred with Mukesh Banka or his group. The Tribunal concluded that the assessee successfully disclose.........