Absence of Formal Loan Agreement or Repayment Schedule Does Not Justify Treating Unsecured Loan as Unexplained Cash Credit u/s 68 of Income Tax Act: ITAT [Read Order]

loan agreement - unsecured loan - unexplained cash credit - itat - income tax - tax - absence of formal loan agreement - treating unsecured loan as unexplained cash credit - cash credit - taxscan

The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench has held that the absence of a formal loan agreement or repayment schedule does not justify treating the unsecured loan as unexplained cash credit under Section 68 of the Income Tax Act, 1961. The assessee, Shri NiteshkumarMaganbhai Patel is an individual engaged in the business of civil…

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