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2023 (7) TMI 928 - ITAT DELHIAddition u/s 68 - unsecured loans appearing in the books of the assessee treated as unexplained cash credit - assessee company is a sick industrial company and registered with erstwhile BIFR under sick industrial company (Special Provisions) Act, 1985 for rehabilitation since its net worth turned negative and fully eroded in year 1991 - HELD THAT:- As lender company has got free reserves which itself proves the creditworthiness to make interest free advances to the assessee company. All the transactions are routed through regular banking channels and duly reflected in the balance sheet of the lender company and duly supported by a confirmation from lender company. Hence, the identity, creditworthiness of the lender and genuineness of the transaction are prove beyond doubt. The loan transactions are routed through regular banking channels and reflected duly in the annual accounts of the lender company. Hence the genuineness of the transactions is also proved beyond doubt. All the three necessary ingredients of section 68 of the Act has been proved in respect of this loan transaction. Decided in favour of assessee.
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