Section 68 Additions Fail: Documentary Evidence Cannot Be Ignored Without Enquiry

ITO Vs Forever Flourishing Finance & Investment Pvt. Ltd. (ITAT Mumbai) The AO made additions under Section 68 treating ₹1.93 crore (sale proceeds of shares) and ₹2.39 crore (unsecured loans) as unexplained cash credits, alleging lack of creditworthiness and genuineness. The CIT(A) deleted the additions, noting that: Share sale transactions were genuine and supported by past records, and merely because the buyer company was later struck off cannot invalidate earlier transactions. For loans, the assessee had furnished complete documentary evidence (PAN, bank statements, ITRs, financial...