It was the finding of the Tribunal that during the year under consideration, assessee and its sister concerns received unsecured loans form the same entity via banking channels. All the three sister concerns including assessee, returned the entire unsecured loans within the same financial year. Additions in the case of sister concerns of the assessee were deleted by the CIT(A). However, in the case of assessee addition was upheld. Further the proprietor of lender had explained the source of credit, before lending money to the assessee and its sister concerns and assessee made payment of interest after deducting TDS. This fact has not been disputed either by the Revenue or the proprietor of lender during the assessments of the assessee’s sister concern. It was also noted that No disallowance of such payment of interest was made by the AO. The Tribunal, therefore, held that the AO is not justified in making addition u/s. 68. (AY. 2007-08)