Unexplained Loans from Suspected Shell Entities Taxable as Income: ITAT Ahmedabad

Pavankumar M Sanghvi Vs ITO (ITAT Ahmedabad) Income Tax Appellate Tribunal (ITAT), Ahmedabad, has dismissed an appeal filed by Pavankumar M Sanghvi, upholding the Assessing Officer’s (AO) decision to treat unsecured loans totaling Rs 20 lakhs as unexplained cash credits under Section 68 of the Income Tax Act. The AO had reopened the assessment after receiving information from the Directorate of Income Tax (Investigation) indicating that the lenders, Natasha Enterprises and Mohit International, were part of a network of shell entities managed by Praveen Kumar Jain (PKJ), allegedly involve...