Unsecured Loans – Genuineness and Creditworthiness – AO issued notices u/s 133(6) to only part of the lenders – No summons issued u/s 131 – No incriminating material brought on record – Addition deleted to extent of loans repaid, balance remanded for verification

45. [2025] 123 ITR(T) 660 (Nagpur - Trib.)

Ravindra Madanlal Khandelwal vs. Deputy Commissioner of Income-tax

ITA NO.: 375/NAG/2024

A.Y.: 2018-19 DATE: 18.11.2024

Section 68, 36(1)(iii)

Unsecured Loans – Genuineness and Creditworthiness – AO issued notices u/s 133(6) to only part of the lenders – No summons issued u/s 131 – No incriminating material brought on record – Addition deleted to extent of loans repaid, balance remanded for verification

FACTS I

During the scrutiny assessment, the Assessing Officer noted that the assessee was in receipt of new unsecured loans from various individuals and entities and sought to verify the genuineness, creditworthiness, and identity of the creditors from whom these loans were reportedly received.

In response to notices under section 142(1), the assessee submitted list of lenders, their PAN, address, ledger confirmation of most of the debtors, interest payment details, details of TDS deducted on interest and the TDS returns of the assessee but they were unable to submit the return of incom