Sec 68 Addition Upheld – Failure to Prove Identity, Creditworthiness & Genuineness of Loans

Prodigy Infomatics Private Limited Director Vs ITO (ITAT Mumbai) In this case, the assessee challenged addition of ₹14.37 lakh u/s 68 towards unsecured loans and disallowance of interest of ₹82,110. The AO had made the addition on the ground that the assessee failed to furnish confirmations and supporting evidence to establish identity, creditworthiness and genuineness of the loan creditors. Before CIT(A), the assessee filed additional evidences including confirmations and bank statements, which were admitted in absence of remand report from AO. However, on examination, CIT(A) found that t...