ITAT DELHI Nov 6, 2020 held that Section 68 is applicable only when the explanation offered by him is not in the opinion of the Assessing Officer satisfactory in respect of the sum so credited / loan taken. The explanation offered by the assessee that the bank account and the capacity of the creditor who have given the loan amount was proved through ITR details of the said parties along with bank statements and confirmations which clearly shows the proper balance in their respective bank accounts and their capacity to loan the amount to any other party as well. Sum credited in the bank account of directors immediately before the issue of cheque to the appellant is not a ground to hold that sum received is unaccounted income. BMR PLYMERS (P) LTD. vs. ITO
BMR PLYMERS (P) LTD. vs. INCOME TAX OFFICER IN THE ITAT DELHI BENCH ‘A’ S. PANNU, VP & SUCHITRA KAMBLE, JM. ITA No. 5936/DEL/2017 Nov 6, 2020 Section 68, 133(6) AY 2012-13 Decision in favour of: Assessee …
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