ITAT Deletes ₹1.12 Crore Addition as Bank-Recorded Loans Declared Genuine

ITAT Finds Bank-Recorded Loans to Be Genuine

The Income Tax Appellate Tribunal (ITAT) has deleted an addition of ₹1.12 crore made under Section 69A of the Income Tax Act, ruling that the loans recorded by the bank were indeed genuine. The tribunal highlighted the requirement for the Revenue to rely on substantial evidence rather than mere conjecture during assessments.

This ruling underscores the significance of maintaining verifiable records and documents to substantiate claims during tax assessments and proceedings. The tribunal noted that without concrete evidence, the reassessment would be deemed irrelevant.

Tax practitioners should take heed of this decision as it emphasizes the critical importance of proper documentation and the need to prepare robust evidence in support of claims, particularly in the context of loan transactions.