Unsecured Loans' Can't Be Treated As Income U/s 68 Once Legitimacy Of Credits Stands Proved: Ahmedabad ITAT

The Ahmedabad ITAT ruled on the legitimacy of unsecured loans under Section 68 of the Income Tax Act. The tribunal emphasized that the onus of proving the genuineness of credits lies with the assessee, including the identity, creditworthiness, and genuineness of transactions. If the assessee fails to provide adequate evidence, the amount is treated as income. In this case, the assessee could not substantiate the legitimacy of the unsecured loans, leading the ITAT to uphold the addition made by the Assessing Officer as unexplained income.