Held that loans received and repaid by account payee cheques. Tax was deducted at source, summons not issued and opportunity of cross examination was not provided. Addition was held to be not valid. Interest on said loans are allowable as deduction. (AY. 2013-14)
Nisarg Lifespace LLP v. ITO (2021) 89 ITR 22 (SN) (Mum.)(Trib.)
S. 68 : Cash credits-Loans-Alleged accommodation entries-Opportunity of cross examination was not provided-Summons was not issued-Loans received and repaid by account payee cheques-Tax was deducted at source-Addition was held to be not valid-Interest on said loans are allowable as deduction. [S. 36(1)(iii), 133(6)]