Loan Creditworthiness in Question: ITAT Remands ₹36.5 Lakh addition Case

Karunakaran Leela Vs ITO (ITAT Chennai) In the case of Karunakaran Leela vs. ITO, the ITAT Chennai reviewed the addition of ₹36.50 lakh made under Section 68 of the Income Tax Act for unexplained cash credits linked to unsecured loans. The assessee had obtained loans totaling ₹120 lakh from 17 creditors during AY 2018-19. Upon examination, the Assessing Officer (AO) observed that only three of the five creditors responded to notices issued under Section 133(6). The AO determined that the creditors lacked sufficient income to justify the loans and highlighted suspicious cash deposits in the...