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2021 (10) TMI 1436 - ITAT MUMBAIAddition u/s 68 - bogus loan transaction - AO suspected the transaction to be bogus as on the loan amount no interest was paid by the assessee on repayment of loan - HELD THAT:- Assessee has furnished bank statement indicating that the loan was taken by the assessee from M/s. Fastline Multitrade Pvt Ltd. through banking channel on 16/01/2012 i.e. during the period relevant to the assessment year under appeal. The said loan was repaid by the assessee through cheque and the amount was debited from the account of assessee on 26/03/2013 i.e. loan was repaid in the immediately succeeding assessment year. The assessee has filed confirmation from M/s. Fastline Multitrade Pvt Ltd. admitting the genuineness of aforesaid loan transaction. A perusal of the aforesaid communication further reveals that the statement made by Shri P.K.Jain during the course of search was subsequently retracted. It is an undisputed fact that the assessee had repaid the loan amount. It is not the case of Revenue that the assessee after having accepted loan has never repaid the loan. Taking into consideration entirety of facts, find no reason to sustain the addition. Once the assessee has repaid loan amount the addition is not sustainable. Consequently, the impugned order is quashed and appeal by the assessee is allowed.
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