Bank Passbook Evidence Validates Loan Transaction: ITAT deletes Addition u/s 68, Remands Interest...

The ITAT has provided relief to a taxpayer, ruling that a bank passbook is valid evidence to substantiate a loan transaction. The tribunal deleted an addition under Section 68 of the Income Tax Act but remanded the issue of interest disallowance back to the Assessing Officer for re-consideration. The ruling clarifies that the assessee is not expected to prove the source of cash deposits made by the creditor in their bank account. The tribunal's decision is a significant victory for the taxpayer and reinforces the principle that an addition to income cannot be made without proper evidence.