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Mere Same-Year Loan Repayment Does Not Establish Genuineness: ITAT Mumbai
['Author Info', 'Name', 'Qualification', 'Company', 'Location', 'Articles Published', 'View Full Profile', 'More Ca Vijayakumar Shetty', 'August']
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AdvertisementITO Vs Seven Rings Education Pvt.
Ltd. (ITAT Mumbai) Mumbai ITAT: Repayment of Loan in Same Year Does Not, by Itself, Establish Genuineness Under Section 68 The Mumbai ITAT allowed the Revenue’s appeal and restored an addition of ₹25.43 crore under Section 68, holding that mere repayment of the amount in the same financial year is not sufficient to establish the genuineness of a loan transaction.
The assessee must independently establish the identity, creditworthiness of the lender, and genuineness of the transaction.
The assessee-company had received ₹25.43 crore from M/s.
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