Unexplained cash credit claim fails where creditor confirms shop-booking payments and records support transfer to firm.

Amounts received from a creditor were held not to be unexplained cash credits under section 68 where the creditor confirmed the transaction, the receipts were shown to be part of consideration for booking shops, and the amounts were later transferred to the partnership firm. The sale deed also supported the creditor's version, establishing the identity and nature of the receipt as property purchase consideration rather than a loan or unexplained advance. In the absence of contrary material, the additions were deleted.

---

---

Issues: Whether the addition made towards the amounts received from Neeta Rajendra Sheth as unexplained cash credit could be sustained when the creditor confirmed the transaction and the material on record showed that the amounts were paid towards booking of shops and were subsequently transferred to the partnership firm.

Analysis: The amount of Rs. 19,00,000 for the first assessment year and Rs. 51,00,000 for the second assessment year formed part of a larger receipt of Rs. 70,00,000 from the creditor towards booking of shops. The confirmation given by the creditor in response to notice under section 133(6) established the identity of the creditor and explained the nature of the receipt as part of property purchase consideration, not as a loan or advance. The record also showed that the amounts were subsequently transferred to Aarya Infra, and the sale deed supported the creditor's version. In these circumstances, there was no material to treat the receipts as non-genuine or unexplained under section 68.

Conclusion: The additions were not sustainable and were deleted, resulting in relief to the assessee in both appeals.

---