The assessee received unsecured loans from a creditor alleged by the Assessing Officer to be a shell entity providing accommodation entries. The assessee furnished complete details, including the creditor’s name, address, PAN, confirmations, bank statements, financial statements and income-tax returns establishing that the transactions were through banking channels. The creditor’s own assessment had accepted the source of its share capital after enquiry under section 133(6), and it possessed sufficient reserves and surplus to advance the loan. The Tribunal held that the assessee had discharged the initial onus under section 68 by proving the identity and creditworthiness of the creditor and the genuineness of the transactions. The assessee was not required to prove the source of the creditor’s funds when the creditor’s financial capacity stood established. The deletion of the addition by the Commissioner (Appeals) was upheld. (AY. 2015-16,  2016-17.)