Tag: addition u/s 68

Assessees was  not required to prove the “source of the source‟ of funds received as unsecured loans Prior to the amendment of Finance Act, 2022 In a recent judgment, Hon’ble Delhi High Court held that since the case related to prior to the amendment of Finance Act, 2022 …

Once the AO has accepted the trading results, he cannot thereafter selectively treat a part of the sale proceeds as unexplained – ITAT In a recent judgment, ITAT Visakhapatnam has held that once the AO has accepted the trading results, he cannot thereafter selectively treat a part of …

Assessee could not said to indulged in penny stock sale on human probabilities without showing his involvement – ITAT deleted addition under section 68 In a recent judgment ITAT Delhi deleted addition observing that applied the concept of Human probabilities and held the above said scrips to be …

Difference of cash deposit between two Assessment Years cannot be added on illogical rationale that there cannot be any increase in cash deposit between two years – ITAT In a recent judgment, ITAT Chennai has held that difference of cash deposit between two Assessment Years cannot be added. …

When books of accounts are rejected and profits are estimated, no separate disallowance can be made on basis of entries in books In a recent judgment, ITAT Amritsar has held that when books of accounts are rejected and gross profit is estimated at a percentage on sales, it …

Omission in mentioning name of lender in the audit report no basis to discard cogent documentary evidence – ITAT In a recent judgment, ITAT Agra has held that any omission in mentioning the name of lender/payee in the tax audit report cannot be made basis to discard assessee’s …

Addition u/s 68 deleted as time gap between cash withdrawal and cash deposit into bank account was similar to the preceding year, establishing it was a normal feature of the assessee’s business. In a recent judgment, Hon’ble Delhi High Court upheld deletion of addition u/s 68 towards cash …

When assessee had already repaid unsecured loans along with the interest no addition can be made under Section 68 treating them accommodation entries. In a recent judgment, ITAT Jaipur held that where assessee had already repaid unsecured loans along with the interest no addition can be made under …

Non application of correct section is a classic example of non-application of mind by Quasi-judicial authority – ITAT deleted addition u/s 69 In a recent judgment ITAT Raipur deleted addition made under section 69 instead of correct section 68 of the Income Tax Act, 1961 (the Act) holding …

It is well-settled that once the source of cash is explained to be business receipts already accounted for and taxed, addition u/s 68 is unwarranted – ITAT In a recent judgment, ITAT Surat has deleted addition u/s 68 of the Income Tax Act, 1961 (the Act) holding that …