Cash Loan advanced in Earlier Years Cannot Be Taxed in Current Year

Dhanaraja Babu Ganesh Vs ITO (ITAT Bangalore) In the case of Dhanaraja Babu Ganesh vs ITO, the ITAT Bangalore addressed the issue of taxing a cash loan advanced by the assessee in earlier assessment years. The assessee had given a cash loan of Rs. 4.75 crore to one Sri Madhukar during the financial years 2015-2017. However, the Assessing Officer (AO) added this amount as unexplained cash credit under Section 68 of the Income Tax Act for the assessment year 2018-19, despite the fact that the loan transaction had taken place in the earlier years. This was done following a reassessment order unde...