Held, allowing the appeal, that the amendment to section 68 introduced by virtue of the Finance Act, 2022 ((2022) 442 ITR (St) 91) made it clear that section 68 as was in force prior to April 1, 2023, did not require the assessee to explain the source of the source of funds other than share capital money, share capital, share premium or any amount of such nature. The assessee had established (a) the identity of the source; (b) the financial capacity of such source; and (c) the genuineness of the transaction and had discharged its burden. The assessee had explained that the funds had been lent by its director Hitesh Bhatia\u00a0 and had additionally produced relevant documents to show that the funds had been received through banking channels from the bank account of Hitesh Bhatia. Insofar as the genuineness of the transaction was concerned, there was material on record to indicate that the amount credited in the books of account, which had been reflected as loans from Hitesh Bhatia, were unsecured loans and HB had confirmed it. HB was not a stranger to the assessee and was vitally interested in the affairs of the assessee. Therefore, the financial assistance extended by him could not be doubted. Addition confirmed by the Tribunal deleted. (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
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