Insufficient Evidence to Prove Loan Creditworthiness: ITAT remands Unexplained Cash Deposits matter for Reconsideration

The ITAT remanded the case regarding unexplained cash deposits to the AO for reconsideration, citing insufficient evidence to prove the loan’s creditworthiness. The case involved large cash deposits in the taxpayer’s account, which the authorities could not link to any valid source of income. The tribunal directed the AO to reconsider the case after conducting a detailed investigation into the creditworthiness of the individual who provided the loan, ensuring that decisions are based on solid evidence.