Dismissing the appeal of the assesse the Court held that ; The Tribunal held that the assessee has not been able to produce the alleged lenders for verification and could not rebut the allegation of revenue authorities that the said lenders are shell entities, the loans cannot be accepted as genuine transactions and therefore the addition under S. 68 is upheld and consequently, deduction of interest on alleged borrowings is disallowed. ( AY. 2007 -08)
Pavankumar M. Sanghvi v. ITO ( 2018) 404 ITR 601/301 CTR 265 / 163 DTR 209( Guj) (HC) Editorial: Order in Pavankumar M. Sanghvi v. ITO (2017) 165 ITD 260/ 187 TTJ 32 /152 DTR 201 / 59 ITR 189 ( SMC)(Ahd.)(Trib.) is affirmed/Editorial: SLP of assessee is dismissed Pavankumar M. Sanghvi v. ITO (2018) 258 taxman 160 (SC)
S. 68 : Cash credits –Shell companies –Failure to produce lenders- Addition was held to be justified- Transaction was held to be non genuine .