Section 68 Amendment on Creditor’s Source Applies from AY 2023-24

Mall Hotel Ltd. Vs CIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) Delhi has set aside an addition of ₹2.20 crore made under Section 68 of the Income Tax Act, 1961, against Mall Hotel Ltd. The Tribunal ruled that once the identity and creditworthiness of the creditor were established, the assessee was not obligated to explain the “source of source” of the funds, particularly in light of the law prevalent for the assessment year in question (2006-07). The appeal by Mall Hotel Ltd. challenged the order of the Commissioner of Income Tax (Appeals)-IX, New Delhi, which had u...