Tag: addition u/s 68

There can be plethora of reasons for failure to execute a formal loan agreement reduced in writing. The need for written agreement should be best left to the judgment of the parties. In a recent judgment, ITAT Delhi observed that there can be plethora of reasons for failure …

Mere failure of partner to respond to notice u/s 133(6) does not ipso facto establish that the capital is unexplained – ITAT upheld deletion of addition u/s 68 In recent case, ITAT Ahmedabad has upheld that the failure of the partner to respond to a notice under section …

Addition u/s 68 for corpus donation received from struck off companies – SLP dismissed  In a recent judgment, Hon’ble Supreme Court dismissed the Special Leave Petition (SLP) of the assessee against the order of the High Court upholding addition under section 68 towards corpus donation received from companies …

Cash Advance received by the assessee and not doubted by AO can’t be rejected as source of cash available for deposits in bank – ITAT In a recent judgment, ITAT Agra held that when Assessing Officer (AO) accepted the advance received from customers in cash as genuine and …

Sundry creditors are not loans or advances where creditworthiness to give advances is essential point for examination – ITAT In a recent judgment, the ITAT Lucknow has held that sundry creditors do not represent loans or advances taken by the assessee where creditworthiness to extending the advances are …

ITAT is required to examine correctness of the findings recorded by appellate authority and record conclusion why such findings are not acceptable In a recent judgment, the Hon’ble Calcutta High Court has held the ITAT over-turning the order passed by the appellate authority was required to examine the …

Amount of share capital received in earlier year can not be taxed as unexplained cash credit in subsequent Year – ITAT In a recent judgment, ITAT Kolkata deleted the addition made as unexplained cash credit u/s 68 for share capital received in earlier year on the pretext that …

Addition u/s 68 for cash collection from exhibition of films in the theaters deleted as the amount was duly recorded in books of account.  In a recent judgment, ITAT Chennai has deleted the addition u/s 68 towards cash collection from exhibition of films in the theaters as the …

Finding recorded by lower authorities on the basis of evidence can not be interfered with by the third Appellate Court – High Court In a recent judgment, Hon’ble Guwahati High Court has held that finding once recorded by both the lower authorities on the basis of evidence with …

Addition u/s 68 on account of cheque received from director of the company on the last day of the financial year which was reversed on 1st day of next financial year – SLP dismissed In a recent order Hon’ble Supreme Court has dismissed the SLP of the assessee …