Addition for Unexplained Investments cannot be made based on principles governing cash credit

Kishan Kothwal Vs ITO (Telangana High Court)

HC held that The parameters for making addition under Section 68 of the Act and under Section 69A of the Act, though may appear to be similar, however, is not so; therefore, addition of cash credit under Section 68 of the Act would stand on a different pedestal. The principles governing cash credit under Section 68 of the Act cannot be extended to unexplained investments under Section 69A of the Act.

FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT

Heard Mr.Vijay Kumar Punna, learned counsel for the appellant.

2. This appeal has been preferred by the assessee, as the appellant, under Section 260A of the Income Tax Act, 1961 (briefly ‘the Act’ hereinafter) against the order dated 28.06.2021 passed by the Income Tax Appellate Tribunal, Hyderabad Bench ‘B’, Hyderabad (Tribunal) in I.T.A.No.289/H/2020 for the assessment year 2017-18.

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