#loan genuineness

ITAT Delhi dismisses Revenue’s appeal, ruling that for Section 68 IT Act, the assessee need not prove the 'source of source' if the lender’s creditworthiness is established through banking channels and financial records. The decision clarifies the scope of unexplained credit provisions, impacting tax assessments for loans and financial transactions.

ITAT Surat rules that unsecured loans cannot be treated as unexplained cash credits under Section 68 merely due to the donor's fund source, unless directly linked to the assessee. The tribunal deleted a Rs. 30 lakh addition, emphasizing that creditworthiness is established through identity, genuineness, and bank transactions, not the origin of the donor's funds.