Cheque Payments & Confirmations Not Enough; Gujarat HC Confirms Section 68 Addition

Pavankumarm Sanghvi Vs ITO (Gujarat High Court) The assessee filed a tax appeal before the Gujarat High Court challenging the order of the Income Tax Appellate Tribunal dated 17.05.2017. The appeal raised two questions: whether the Tribunal was justified in confirming the addition of ₹20 lakh as unexplained cash credit under Section 68 of the Income Tax Act despite confirmations from the lenders, and whether the Tribunal was justified in confirming the disallowance of ₹3,66,041 towards interest paid on the unsecured loans treated as unexplained cash credits. The additions had been made by ...