Bombay HC: Unexplained Bank Credits Taxable under Sec 68, Orders Probe into Accommodation Entry Racket

PCIT Vs Buniyad Chemicals Ltd. (Bombay High Court) Bombay High Court recently delivered a significant judgment in the case of Principal Commissioner of Income Tax (PCIT) Vs. Buniyad Chemicals Ltd., ruling in favor of the revenue department. The court overturned the Income Tax Appellate Tribunal’s (ITAT) order and restored part of the Commissioner of Income Tax (Appeals) [CIT(A)]’s decision, holding that unexplained credits found in the assessee’s bank accounts can be treated as income under Section 68 of the Income-tax Act, 1961. The court emphasized that the onus lies on the...