Fiduciary Journal entry without cash cannot be taxed u/s 68: ITAT Mumbai

Gopaal Bhagwandas Ahuja Vs ACIT (ITAT Mumbai) Assessee, a real estate trader & proprietor of Ahuja Traders, had recorded a ₹4.27 crore transaction in his books via journal entry. AO noted that Mrs. Prerna Ahuja had only ₹3,434 income that year & doubted her creditworthiness to give such a loan. Assessee explained that this was not a loan, but merely a journal reclassification of an escrow arrangement involving Komal Exotic Spices Pvt. Ltd., in which both his wife & daughter-in-law were directors.AO treated the entry as unexplained & added it as income u/s 68. CIT confirmed ...