Section 68 (unexplained cash credits), not applicable to purchase costs

Ishwar R Pujara Vs ACIT (ITAT Delhi) Introduction: In a recent development, the Income Tax Appellate Tribunal (ITAT) in Delhi pronounced its verdict on Section 68 in the case of Ishwar R Pujara Vs ACIT. This case revolves around the addition of Rs.23,67,786 as an unexplained investment related to a transaction in M/s. SVC Resources Ltd. The ITAT’s ruling brings clarity to the intricate relationship between Section 68, which typically deals with unexplained cash credits, and purchase costs. Detailed Analysis: The appellant contested the addition made by the Assessing Officer (AO) under Se...