Addition u/s 69A unsustainable as source of loan transaction duly explained

Arun I Keshwarni Vs ITO (ITAT Mumbai)

ITAT Mumbai held that once the transaction is duly recorded in the books of accounts and due explanation with regard to source of loan transaction is provided, addition u/s 69A towards unexplained money unsustainable.

Facts- The assessment of the assessee was reopened u/s 147 by issuing notice u/s 148. It is mainly alleged that amount of Rs.8,00,000/- in the form of cheques is issued to Shri Arun Keswani and cash is given to M/s Ahuja and Associates. The source of this cash component of Rs.8,00,000/- is not explained and is to be added as unaccounted cash income.

The Assessing Officer did not accept the submissions of the assessee and added the loan amount of Rs.8,00,000 as unexplained money under section 69A of the Act

CIT(A) dismissed the appeal. Being aggrieved, assessee has preferred the present appeal.

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