In absence of Evidence Proving Creditworthiness of Creditors additions justified

Nitin Madhukar Rathi Vs DCIT (ITAT Pune)

Introduction: The case of Nitin Madhukar Rathi vs. DCIT, heard at ITAT Pune, revolves around the assessment of unexplained cash deposits arising from unsecured loans. The Assessing Officer (AO) raised concerns about the credibility and regular income source of certain creditors, resulting in an addition of Rs.60,00,000 to the assessee’s total income. The Commissioner of Income Tax (Appeals) [CIT(A)] provided partial relief, but a significant addition of Rs.38,00,000 was confirmed.

Please become a Premium member. If you are already a Premium member, login here to access the full content.