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Section 68 query

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niket

self employed

28 Points Posted on 25 March 2020

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.

Guest

Posted on 25 March 2020

No, assessee has to prove genuiness of the transaction

JP SHARMA

Employee

38 Points Posted on 26 March 2020

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.