Not Every Bank Credit or AIS entry is Taxable: ITAT Nagpur

Shashi Vasant Shastri Vs ACIT (annual) Can every amount credited to Bank Account or reflecting in the Annual Information System (AIS) be taxed as Income ? The answer is a clear ‘No’- yet, in prcatice , this fundamental principle is often overlooked. The Nagpur Branch of the Tribunal in Shashi Vasant Shastri v. ACIT, Central (2026) (ITA NO. 360 (NAG) 2025/ AY 2013-14,order dated 27 March 2026, reaffirmed that mere receipt of money, without it bearing the the character of income- cannot be brought to tax under the Income Tax Act. Facts of the case: The assessee entered into an Agreement to ...