Addition for Unexplained Cash credit merely based on doubts not sustainable

R.C. Bhaskar Vs Addl. CIT (ITAT Bangalore) It is not disputed that there was an outstanding balance receivable from Bindu Promoters, Bangalore as on 31.3.2007 at Rs.4.5 lakhs. The contention of the Ld. A.R. is that the said amount has been given towards purchase of land, which was not materialized and same was returned back to the assessee. The same was shown as receipt from the said party by way of cash. The only reason for treating this amount as unexplained u/s 68 of the Act is that the assessee has not filed the confirmation letter from Bindu Promoters, Bangalore. In our opinion, the balan...