Sec. 68 Unexplained Credit can only be added to taxable income of AY in which it occurs

In a recent ruling, the ITAT Jabalpur, decided the case in favour of the assesse, deleting the additions made by the Assessing Officer towards sundry creditors amounting to Rs. 5.07 lacs. The court held that under Section 68 of the Income-Tax Act, 1961, only the amounts found credited during the impugned assessment year can be added and be deemed to be the income of the impugned assessment year if the Assessing Officer is not satisfied about the nature and source of such cash credit. The issue of cash credit has always been a matter of vexatious litigation. Section 68, lays down a golden rule ...