Section 69A misapplied when routed through Banking channels

The Mumbai Bench of the Income Tax Appellate Tribunal has held that Section 69A cannot be invoked where the impugned transactions are admittedly recorded in the books of account and routed through banking channels. 

The Tribunal observed that even if the Revenue's allegation that the transactions constituted accommodation entries were accepted, the statutory preconditions for invoking Section 69A remained unsatisfied. 

Since the amounts represented recorded loan transactions and not unaccounted money owned by the assessee, the addition of ₹1.125 crore was deleted.