Section 68 Loans Upheld

The Delhi Bench of the Income Tax Appellate Tribunal upheld the deletion of an addition of ₹6.25 crore made under Section 68 of the Income-tax Act, 1961. 

The Tribunal held that where the assessee subsequently furnished complete documentary evidence establishing the identity, creditworthiness and genuineness of lender entities, and the Revenue failed to rebut such evidence even in remand proceedings, the addition could not survive merely because the lenders did not appear before the Assessing Officer. 

The Tribunal also attached significance to the fact that the loans were advanced and repaid through banking channels within a short period and that the lender entities were active NBFCs possessing substantial net worth.