Genuineness of loans not established: ITAT confirmed CIT(A) disallowing interest paid

Shyam Realities Vs DCIT (ITAT Ahmedabad) These two appeals were filed by the assessee against the orders passed by CIT (A) who confirmed the disallowance of interest on unsecured loans to the extent of Rs.36,69,000/- for AY 2017–18 and Rs.38,94,295/- for AY 2018–19. The assessee is a partnership-firm engaged in the business of construction and development. During the respective assessment years, AO disallowed interest expenditure on unsecured loans on the ground that the loans were either unexplained or not genuine. For AY 2017-18, AO treated certain unsecured loans as unexplained u/s 68 a...