#unsecured loans

ITAT Ahmedabad rules that for unsecured loans under Section 68, establishing the lender’s identity, creditworthiness via bank statements/ITR, and repayment through banking channels is adequate to avoid additions-even without tracing the origin of funds. This simplifies compliance for taxpayers and narrows the scope of scrutiny for revenue authorities.

ITAT Delhi clarifies that taxpayers must discharge burden under Sections 68 and 56(2)(viib) only after providing prima facie evidence; mere suspicion by AO insufficient to sustain additions.

Delhi ITAT holds that repayment of unsecured loans with interest, supported by MCA records and bank statements, discharges assessee's burden under Section 68; no addition permissible without concrete evidence of accommodation entries.