Section 68 Addition Unjustified as Loan Genuineness, Lender Capacity & Transaction Proven: Gujarat HC

Pavankumar M Sanghvi Vs ITO (Gujarat High Court) The Gujarat High Court dismissed an appeal filed by Pavankumar M Sanghvi , challenging the Income Tax Appellate Tribunal’s (ITAT) decision to uphold additions of Rs. 20 lakhs and Rs. 3.66 lakhs under Section 68 of the Income Tax Act, 1961. These additions were made by the Assessing Officer, treating unsecured loans received by the assessee as unexplained cash credits. The ITAT, after examining the evidence, concluded that the loan transactions lacked genuineness, citing irregularities in the lenders’ bank statements and financial r...