Case Law Analysis
|Income Tax Appellate Tribunal
Section 68 IT Act | Repayment via RTGS with Verified Lender Creditworthiness Negates Unexplained Cash Credit Allegation : ITAT Ahmedabad
ITAT Ahmedabad has ruled that when a company repays loans through traceable banking channels like RTGS, with documented lender financial capacity and TDS compliance, such transactions cannot be treated as unexplained cash credits under Section 68. This sets a critical precedent for businesses relying on legitimate borrowings, shifting the burden away from mere source-of-funds speculation to verified transactional evidence.