Old Loans Converted into Share Allotment Cannot be Unexplained Money: ITAT deletes Addition under Income

The ITAT ruled that old loans converted into share allotments cannot be treated as unexplained money under the Income Tax Act. The case involved scrutiny of funds received by the assessee, where loans from related parties were converted into share capital. ITAT emphasized that the conversion was supported by necessary documentation and disclosures, negating the addition made by the tax authorities. This decision underscores the importance of proper documentation and adherence to legal requirements in such financial transactions.