Once repayment is established, Section 68 additions unwarranted: ITAT Jaipur

ITO Vs Kedia Builders and Colonizers Pvt. Ltd. (ITAT Jaipur) In the case of ITO Vs Kedia Builders and Colonizers Pvt. Ltd., the Jaipur bench of the Income Tax Appellate Tribunal (ITAT) examined the validity of an addition of ₹1.75 crore made by the Assessing Officer (AO) under Section 68 of the Income Tax Act. The AO contended that the amount represented unexplained credit from shell companies linked to the Banka Group, a known provider of accommodation entries. This conclusion was based on a statement by Shri Mukesh Banka, recorded during a search, which identified these entities as conduit...