Pursuant to information gathered during a search in the case of a third party, the Assessing Officer reopened the assessment and disallowed interest paid on loans alleged to be bogus. The assessee produced affidavits, income-tax returns, bank statements and other documentary evidence establishing the identity and creditworthiness of the lenders and the genuineness of the transactions. The loans had been accepted in the years in which they were taken and were subsequently repaid. Since no addition was made towards the principal amount of the loans and the Revenue failed to rebut the evidence produced by the assessee, the Tribunal held that the disallowance of interest was unjustified and directed its deletion. (AY. 2011-12)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68: Cash credits -Interest on loans -No disallowance when assessee proves identity, creditworthiness and genuineness of lenders and loans accepted by Revenue-Addition was deleted. [S. 37(1)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62533","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ggB","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62533"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62533\/revisions"}],"predecessor-version":[{"id":62534,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62533\/revisions\/62534"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}