Summary
- The ITAT Mumbai has deleted a ₹5.99 crore addition under Section 68 of the Income-tax Act, 1961, citing lack of verification by the Assessing Officer.
- The Tribunal found that Green Valley Homes Developers Pvt Ltd. provided extensive documentation proving the genuineness of loans received from various entities.
- It noted that the loans were repaid and that the Assessing Officer relied solely on a retracted statement from Shri Praveen Kumar Jain without conducting independent verification.
- This ruling reinforces the principle that suspicion cannot replace evidence in tax assessments, potentially impacting similar cases involving loan verifications.
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