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If these loans were not genuine, then the same would not have been repaid - No additions u/s 68: ITAT Mumbai

ITAT Mumbai in the case of ITO vs. Shanti Realtors held that the assessee had satisfied all the requirements u/s 68 of the Income Tax Act and hence the loans received could not be added as unexplained credits. The assessee established the identity, creditworthiness, and genuineness of transactions and produced respective account confirmations, ITR acknowledgment, audited accounts and bank statements of the lenders. Loans given by the lenders were reflected in their audited accounts and ITR. These parties had utilized their own funds for advancing the loans. Loans taken by the assessee were subsequently repaid through banking channels.

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