#section 68

S. 68 No Addition if Assessee discharges initial onus casted on him

ITO vs.  Parth Mehrotra (ITAT Delhi), I.T.A. No. 3333/Del/2011, Date-18th February, 2015

Assessee had declared an income by filing its return. The said return was selected for scrutiny through CASS on the basis of AIR. Assessment u/s 144 was made, resulting in an addition of Rs. 28,50,000/- as the assessee was found to have failed to explain the source of investment. (more…)

S. 68 Addition based on mere report of Investigation Wing not sustainable

The only issue here is the addition of Rs.60 lacs made by the Assessing Officer as unexplained credit on account of the share application money. On going through the facts of the case, we notice that assessee has filed the relevant details which it could have filed in support of its contention of having received the share application money from each of these shareholder companies. (more…)

Section 269SS not violated in accepting share application money or deposit in current account in cash

CA Prarthana JalanHon’ble Chandigarh bench has in the case of M/s Eqbal Inn & Hotels Ltd.  has held that Share Application Money or deposit in the current account cannot be included in the definition of deposit so as to trigger provisions of sec 269SS of the Income Tax Act,1961. Brief facts of the case were that the assessee company was in the business of construct ion of the hotel . The…

B/F unabsorbed depreciation can be set off against Unexplained Income U/s. 68

ACIT Vs. M/s. Shree Raghupati Fibres Pvt. Ltd. (ITAT Ahmedabad), ITA. No. 256/Ahd/2011, Date of Order: 12.09.2014

In the instant case, the Assessing Officer observed that the addition of Rs 13,80,000/- was made u/s. 68 of the Income Tax Act which does not form part of any specific head of income and is also not business income, therefore brought forward unabsorbed depreciation cannot be allowed…

Purchases cannot be treated as bogus for mere none traceability of suppliers

CIT vs. Nangalia Fabrics Pvt. Ltd (Gujarat High Court), TAX APPEAL NO. 689 of 2010, Date : 22/04/2013

The question pertains to the purchases made by the assessee-respondent. On account of unverifiable purchases, the Assessing Officer made additions to the tune of Rs. 1.27 crores. He was of the opinion that none of the parties could be located and therefore, such purchases were held to be bogus.…

Business loss can be set off against addition u/s. 68 or undisclosed income

CA Prarthana Jalan

Once loss is determined, the same should be set off against the income determined under any other head of income including undisclosed income

Hon’ble ITAT Ahemdabad Bench in the case of M/s. K.R. Automobiles v/s ACIT in ITA No.1972/Ahd/2012 has held that business loss  can be set off against the addition u/s.68 of the Act by observing as follows:-

(more…)

ITAT deletes Addition for unexplained cash credit in the form of Share Capital & Share Premium

In the present matter the assessee had received Rs.2.50 crores from the six companies in the form of share capital and share premium and the same is added by AO as unexplained cash credit. on Appeal before ITAT it was held that -

In the case of the assessee, summons issued by the Assessing Officer to the shareholder companies were duly served upon them and the shareholder companies responded to…