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| The Tax Publishers2020 TaxPub(DT) 4775 (Del-Trib) INCOME TAX ACT, 1961
Section 68
Since the genuineness and creditworthiness of the creditors as well as the transactions was proved by the assessee, no addition could be made under section 68 on account of unsecured loan received by assessee from the two directors of assessee-company.
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Income from undisclosed sources - Addition under section 68 - Genuineness of loan -
Assessee was engaged in the business of manufacturing unsaturated Polymers. .AO completed assessment by making addition on account of unsecured loan received by assessee from the two directors of assessee company. Held: In respect of the loans taken from the Directors of the Company, the assessee has submitted the relevant documentary evidences to establish the genuineness, creditworthiness and capacity of these loanee. But, AO failed to record his opinion and satisfaction as to why the sum credited in the books of account of the assessee is coming under the purview of section 68. Hence, addition made could not be valid.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2012-13
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