Restriction of addition towards unexplained cash credit by CIT(A) upheld: ITAT Ahmedabad

ITO Vs Lydia Construction Pvt Ltd (ITAT Ahmedabad) ITAT Ahmedabad held that restriction of addition to Rs. 1.45 crore from Rs. 9 crore towards unexplained cash credit on account of share application money by CIT(A) justified as the same was based on evidences. Facts- Assessee filed a “NIL” income tax return for the Assessment Year 2011-12, which was processed u/s. 143(1) of the Income Tax Act. Subsequently, information was received from DGIT(Inv) Mumbai about a search on Praveenkumar Jain Group, revealing that Praveenkumar Jain provided bogus loans, share applications, and sales/purchases....