AO cannot invoke Section 68 merely for Unsatisfactory Explanation from Assessee

Ashish Sumatibhai Shah Vs DCIT (ITAT Ahmadabad) Hon’ble Supreme Court in the case of CIT vs. Smt. P.K. Noorjahan (1999) 237 ITR 570 (SC) in the context of the expression ‘may’ with reference to Section 69 of the Act observed that the word ‘may’ should not be read as ‘shall’. The Hon’ble Supreme Court held that the expression ‘may’ indicates that the intention of Parliament in enacting Section 69 (similar to Section 68) was to confer a discretion on the Assessing Officer in the matter of treating the source of investment, which has not been satisfactorily explained by the as...