Section 68 of Income Tax Act, 1961—Unexplained credit—In the instant case, revenue is in appeal against the order passed by CIT which in turn arises from the order passed by the AO.  The CIT deleted the addition made by AO
AO held the amount of loan of 1,86,30,000/- received by the assessee during the year from BMPL as an unexplained credit under Sec. 68 of the Act.

Held that—as the amount of 1,86,30,000/- was advanced by BMPL to the assessee company through bank transactions, thus the genuineness of the loan transaction under consideration also stands proved.
On the basis of our aforesaid observations, we are persuaded to subscribe to the view taken by the CIT(A) that as the ‘nature’ and ‘source’ of the credit of 1,86,30,000/- appearing in the ‘books of accounts’ of the assessee company had been established by the assessee beyond doubt, thus the same could not have been held as an unexplained cash credit under Sec. 68. We thus finding no infirmity in the view taken by the CIT(A) that the loan of 1,86,30,000/- received by the assessee company from BMPL could not be held as an unexplained cash credit under Sec. 68 of the Act, uphold the same.[DY. COMMISSIONER OF INCOME TAX-3 (3) (2) , MUMBAI VERSUS M/S UDAIPUR PROPERTIES & FINANCE LTD.] [2018] [7] [ITCD Online] [15] [ITAT MUMBAI]