Section 68 Additions Justified if Assessee fails to Prove Genuineness of Unsecured Loan

ITO Vs Sai Everest Building & Developers (ITAT Mumbai) In closely held companies/firm where unsecured loan is raised from close knit circles mostly known to partners/owners, onus required under section 68 is very heavy on such firms to prove identity as well as creditworthiness of lenders and genuineness of transaction; mere submission of name and address of creditor, income tax returns, Balance Sheet/statement of affairs of creditor and bank statement of creditor is not sufficient. “Where lender companies immediately after receiving share capital with huge share premium from several ent...