Proof Over Presumption Section 68 Boundaries

The Delhi Income Tax Appellate Tribunal ruled in favour of the assessee where unsecured loans were treated as accommodation entries only because the lenders were allegedly connected to an entry operator. The Tribunal held that when loans are received and repaid through proper banking channels and supported by confirmations and documentary evidence, they cannot automatically be considered bogus. The tax authorities had relied primarily on an investigation report and ignored the material placed by the assessee. The Tribunal therefore deleted the additions made under Section 68 and the related commission addition.