Unexplained cash credit entries in first year of business cannot be treated as unexplained income

Shri Srinivasa Reddy Yenumula Vs ITO (ITAT Hyderabad) As regards the addition of Rs.18.00 lakhs towards unexplained investment is concerned, the learned Counsel for the assessee placed reliance on the judgment of the Hon’ble Supreme Court of India in the case of CIT vs. Bharat Engg. & Construction Co. reported in (1972) 83 ITR 0187 wherein the Hon’ble Supreme Court held that the unexplained cash credit entries in the first year of its business represents capital receipts and could not be its income. Admittedly, this is the first year of operation of the assessee and the assess...