2026 (2) TMI 1423

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....short), relating to the Assessment Year 2017- 18. 2. The Revenue has raised following grounds of appeal :- "(1) The Ld. CIT (A) has erred in law and on facts in deleting the addition of Rs 1,03,00,000/- made by AO on account of unsecured loan received from various lenders u/s. 68 of IT Act, despite the fact that the assessee had not corroborative evidences identity genuineness/creditworthiness of the lenders during assessment establish the proceedings. (2) The Ld. CIT (A) has erred in law and on facts in admitting the additional evidences during appellate proceedings, without giving the opportunity to the AO as required by Rule 46A.. (3) The Ld. CITA) has erred in law and on facts in deleting the addition of Rs....

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....nbsp;1,03,00,000/- u/s 68 in respect of unsecured loans received from five parties, holding that the assessee failed to establish identity, creditworthiness and genuineness. The Ld. CIT(A), after considering confirmations, PAN details, bank statements, income-tax returns of the lenders, and evidence of transactions through banking channels with deduction of TDS on interest, held that the assessee had discharged the onus cast upon it under section 68 and deleted the addition. 5.1 Before us, the Ld. DR relied upon the assessment order. 5.2 The Ld. AR, on the other hand, submitted that all evidences were filed during appellate proceedings and were duly examined. 5.3 We have carefully considered the rival submissions and perused the ma....

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.... of aadhar card and PAN card e. Shah Corporation - Confirmation, Bank Statement, ITR acknowledgment, Copy of aadhaar card No adverse material has been brought on record by the Revenue to controvert these factual findings. 5.4 In view of the settled law that once identity, creditworthiness and genuineness are established, no addition u/s 68 can be sustained and we, therefore, find no infirmity in the order of the Ld. CIT(A). Accordingly, Ground Nos. 1 and 2 raised by the Revenue are dismissed. Ground No. 3 - Disallowance of Interest 6. The Assessing Officer disallowed interest expenditure of Rs. 1,66,037/- on the ground that borrowed funds were not used wholly and exclusively for business....