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Section 68 query

Tax queries 171 views 3 replies

niket

self employed

32 Points Joined July 2016

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)

Guest

No, assessee has to prove genuiness of the transaction

JP SHARMA

Employee

33 Points Joined September 2016

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.