Section 69A not invocable when cash sourced out of recorded debtors: ITAT Chennai

Nethravathi Distilleries Pvt. Ltd. Vs ACIT (ITAT Chennai)

ITAT Chennai held that when cash is sourced out of recorded debtors, provisions of section 69A of the Income Tax Act could not be invoked. Accordingly, addition u/s. 69A is not sustainable in law.

Facts- The assessee being resident corporate assessee is stated to be engaged in manufacture of IMFL. An enquiry u/s 131(1A) was conducted at the business premises of the assessee by investigation wing, Coimbatore on 13-03-2017. It transpired that the assessee deposited cash of Rs.29.50 Crores in Specified B

Please become a Premium member. If you are already a Premium member, login here to access the full content.