Addition u/s. 68 restricted to 0.30% of total Circular Trading Transaction: ITAT Ahmedabad

ACIT Vs Omshiv Fabricshub Pvt. Ltd. (ITAT Ahmedabad) ITAT Ahmedabad held that CIT(A) rightly restricted disallowance on account of unexplained bank deposit and withdrawal under section 68 of the Income Tax Act to 0.3% of total Circular Trading Transaction. Accordingly, appeal of revenue dismissed. Facts- The assessee is engaged in the business of trading of raw cotton. AO observed that the assessee company has taken accommodation entries totaling the tune of Rs. 88,83,16,516/- (credit and debits) for A.Y. 2013-14, and that such amounts are non-genuine entries entered in the books of accounts. ...