Unsecured loan addition u/s. 68 not sustained as identity, creditworthiness and genuineness proved

Paltex Vs ITO (ITAT Mumbai) ITAT Mumbai held that addition under section 68 of the Income Tax Act treating unsecured loan as unexplained credit not justified since assessee has proved identity, creditworthiness and genuineness of the credit. Accordingly, appeal is allowed. Facts- The present appeal has been preferred by the assessee mainly contesting that CIT(A) has erred in confirming addition under section 68 of ₹ 2.50 lakhs by treating unsecured loan from Anjana Prajapati as unexplained credit. The lower authority has treated unsecured loan as unexplained credit only for the reasons that ...