Addition of unexplained cash credit sustained as genuineness and creditworthiness not proved

Naresh Jagumal Karda Vs ACIT (ITAT Pune)

ITAT Pune held that addition of unexplained cash credit sustained as mere filing of documentary evidence doesn’t absolve proving of genuineness and creditworthiness of the unsecured loans.

Facts-

Assessee alleges that the lower authorities have erred in law and on facts in treating unsecured loans of Rs.50 lakhs obtained from M/s Sumukh Commercial P. Ltd., unexplained cash credits.

Further, the assessee also alleges the issue of disallowance of compensation of Rs.7,51,068/- paid to customers upon cancellation of bookings. The Assessing Officer had disallowed this entire sum which stands restricted to Rs.3,05,068/- in the CIT(A)’s order.

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