No Section 68 addition merely for non-response from directors to notices

PCIT Vs Atlantic Dealers Pvt. Ltd. (Calcutta High Court) Introduction: In a recent case before the Calcutta High Court, the Revenue appealed against a decision by the Income Tax Appellate Tribunal (ITAT) concerning undisclosed cash credit under Section 68 of the Income Tax Act, 1961. The central question revolved around whether the addition made by the Assessing Officer (AO) under Section 68 was justified, particularly in light of non-response from the directors to notices. Detailed Analysis: The crux of the matter lay in whether the AO was justified in drawing an adverse inference due to non-...