No Requirement to Explain Source of Unsecured Loan in Books of Account Prior To April 1, 2023 u/s 68: Delhi HC

The Delhi High Court ruled that unexplained credit provisions (Section 68) do not apply to pre-April 2023 unsecured loans if properly recorded in books, providing clarity on Section 68 applicability. The court held that if unsecured loans received prior to April 1, 2023, are duly recorded in the books of accounts, they cannot be automatically treated as unexplained cash credits merely due to the absence of the lender's current address or other supporting documents. This provides significant relief to taxpayers with older loan entries.