Case Law Analysis
|Income Tax Appellate Tribunal
Section 68 Income Tax Act | Opening Balance of Unsecured Loans Cannot Be Added as Unexplained Credit; Burden Shifts to Revenue After Assessee Proves Genuineness : ITAT Delhi
The ITAT Delhi has ruled that the opening balance of unsecured loans cannot be treated as unexplained credit under Section 68, even if the closing balance is challenged. Once the assessee establishes the identity, genuineness, and creditworthiness of lenders, the burden shifts entirely to the Revenue to disprove the transaction - a critical safeguard for charitable trusts and small entities relying on third-party funding.