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2021 (5) TMI 303 - ITAT MUMBAIUnsecured loans u/s 68 - AO observed that the assessee had shown unsecured loans from various parties in its balance sheet - CIT-A deleted the addition and directing the ld AO to allow interest paid on such unsecured loans - HELD THAT:- Once the assessee has furnished the complete details about the loan creditors together with their latest addresses as available with it and affidavits from directors duly notarised including details of loan repayments made to those companies and confirmations from them for the loans advanced to the assessee, the onus cast on the assessee u/s 68 of the Act stands duly discharged and no addition could be made in its hands merely on because the lenders fail to appear before the ld AO or the assessee failing to produce them before the ld AO. See M/S. ORCHID INDUSTRIES PVT. LTD. [2017 (7) TMI 613 - BOMBAY HIGH COURT] No addition could be made on mere presumption that the assessee routed its own cash in the form of unsecured loans without any concrete evidence to this effect. See M/S. ACQUATIC REMEDIES PVT. LTD. [2018 (8) TMI 347 - BOMBAY HIGH COURT] As the directors of the lending companies had filed affidavits confirming the loan transactions before the ld AO which had not been disputed. Once the averments made in the affidavit are not disputed or refuted, the same are to be construed as true and correct, as held by the Hon’ble Supreme Court in the case of Mehta Parikh & Co. [1956 (5) TMI 4 - SUPREME COURT]. We find no infirmity in the order of the ld CIT-A deleting the addition made towards unsecured loans u/s 68 of the Act and correspondingly allowing interest on such unsecured loans by duly appreciating the facts and evidences on record. Grounds raised by the revenue are dismissed.
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