Section 68 applies when amount credited in assessee’s books lacks satisfactory explanation

ITO Vs Winstar E Com Pvt. Ltd. (ITAT Mumbai) In a landmark decision by the Income Tax Appellate Tribunal (ITAT) in Mumbai, the case between the Income Tax Officer (ITO) and Winstar E Com Pvt. Ltd. brings to light the critical interpretation of Section 68 of the Income Tax Act, 1961. The ruling, which pertains to the assessment years 2011-12 and 2012-13, clarifies the conditions under which Section 68 can be invoked, specifically emphasizing that it applies only if the taxpayer fails to explain the nature and source of amounts credited in its books. The crux of the dispute revolved around the a...