ITAT Deletes ₹15 Crore Section 68 Cash Credit Addition on Old Car Sales Proceed

Spectra Motors Limited Vs ACIT (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai bench, in the case of Spectra Motors Limited Vs ACIT (Assessment Year 2017-18), deleted an addition of ₹15,01,57,610 that had been made by the Assessing Officer (AO) and confirmed by the CIT(A) under Section 68 of the Income-tax Act, 1961. The addition was made on the grounds that cash received from the sale of old vehicles constituted unexplained cash credit. The ITAT held that once the AO accepts the transaction as a sale, treating a part of it as unexplained cash credit merely due to the absence ...