ITAT Orders Fresh Verification of Cash Credit Addition Due to Loan Repayment

Mukhi Corporation Vs DCIT (ITAT Ahmedabad) Repayment of Loan is Key Test for Sec. 68 — ITAT Remands Matter to Verify Repayment; If Repaid, Addition of Rs. 10 Lakhs Must Be Deleted Mukhi Corporation, engaged in real estate development, faced an addition of Rs. 10,00,000/- u/s 68 on account of an unsecured loan received from Shri Shailesh Kalidas. The assessment was completed ex parte u/s 144 due to repeated non-compliance, leading the Assessing Officer to treat the loan as unexplained cash credit for failure to prove identity, creditworthiness & genuineness. The AO also rejected the books...