Section 68 query

I company X has taken loan in AY 2010 - 11 from company A. Company X has repaid it in AY 2014 - 15. In AY 213-14 AO has passed order making addition of section 68. Can assese tell that loan has been repaid so AO cannot make addition.

Thanks in Advance

Replies (3)
Quick Summary
This discussion explores whether a loan repayment made after the assessment year can prevent an addition under Section 68 by the Assessing Officer (AO). While the loan being outstanding during the assessment year may allow for an addition, subsequent repayment is considered a positive factor that could lead to relief in appellate proceedings. The key takeaway is that the assessee must prove the genuineness of the loan transaction itself.

No, assessee has to prove genuiness of the transaction
The loan was outstanding in A.Y 13-14 hence addition can be made by AO ...however repayment of loan subsequently is a positive factor u may get relief in appellate proceedings.
@ JP Sharma Is there any case law available in which repayment has been done and benifit given to assesse

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