INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loan - AO doubted genuineness of transaction and creditworthiness of creditor--Assessee furnished necessary evidences

Assessee-company received unsecured loan from its director. AO doubted genuineness of transaction and creditworthiness of creditor and thus treated loan amount under section 68. Held: Assessee by furnishing copy of return of income for concerned assessment year balance sheet loan confirmation documents, copy of bank statements, statement of director reflecting transaction during relevant period proved identity and creditworthiness of lender and genuineness of loan transaction. Accordingly, there was no justification in making addition on account of unexplained cash credit under section 68.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

INCOME TAX ACT, 1961

Section 143(3)

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