https://www.taxtmi.com/caselaws?id=400701 The ITAT Ahmedabad held that mere non-compliance with summons issued u/s 131 by alleged creditors is insufficient to treat loans as non-genuine for addition u/s 68. The assessee discharged the initial onus by producing evidence regarding the identity, creditworthiness, and genuineness of the creditors and transactions, shifting the burden to the AO to conduct further inquiries with cogent reasons for rejecting evidence. The AO failed to complete the assessment within the prescribed time despite having adequate opportunity and powers. The tribunal ruled that the assessee cannot suffer due to the Department's inefficiency. Transactions in subsequent years raising suspicion were insufficient to treat share capital as unexplained cash credit without proper opportunity to the assessee. The Revenue's appeal was dismissed. en-us Wed, 11 Nov 2020 00:00:00 +0530 Wed, 13 Aug 2025 14:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400701 The ITAT Ahmedabad held that mere non-compliance with summons issued u/s 131 by alleged creditors is insufficient to treat loans as non-genuine for addition u/s 68. The assessee discharged the initial onus by producing evidence regarding the identity, creditworthiness, and genuineness of the creditors and transactions, shifting the burden to the AO to conduct further inquiries with cogent reasons for rejecting evidence. The AO failed to complete the assessment within the prescribed time despite having adequate opportunity and powers. The tribunal ruled that the assessee cannot suffer due to the Department's inefficiency. Transactions in subsequent years raising suspicion were insufficient to treat share capital as unexplained cash credit without proper opportunity to the assessee. The Revenue's appeal was dismissed. Case-Laws Income Tax Wed, 11 Nov 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400701