Income Tax : This guide explains when penalties can be imposed under various provisions of the Income-tax Act, 1961. It also outlines the appli...
Income Tax : This guide explains how unexplained cash credits under Section 68 and related provisions can attract steep taxation under Section ...
Income Tax : The Tribunal held that cash deposits during demonetisation cannot be treated as unexplained when backed by audited books, invoices...
Income Tax : ITAT Bangalore held that profit cannot be estimated arbitrarily when regular books of account are maintained and not rejected unde...
Income Tax : A large spousal gift exemption was denied due to failure in proving genuineness, creditworthiness, and source of funds. The ruling...
Income Tax : ITAT Kolkata deleted the Section 68 addition, holding that share application money already assessed in subscribers' hands cannot b...
Income Tax : Calcutta HC dismissed the Revenue's appeal after the remand report confirmed the disputed receipt was sale proceeds of investments...
Income Tax : ITAT Delhi held Section 68 cannot apply to sale proceeds of disclosed investments already recorded in books. Revenue's appeals wer...
Income Tax : ITAT Delhi held Section 68 inapplicable where shares were disclosed in an earlier year and sale proceeds were already offered as i...
Income Tax : ITAT Agra held Section 44AD could not apply where turnover exceeded the limit, adopted past profit history, allowed telescoping an...
Income Tax : CBDT has instructed tax officers to uniformly apply Sections 68 to 69D and Section 115BBE after a C&AG audit found inconsistencies...
Income Tax : Assessing Officers should follow the sequence as noted below for applying provisions of section 68 of the Act: Step 1: Whether the...
The tribunal held that reliance on an investigation report cannot override the statutory requirement of section 68. Where the assessee maintained no books, additions based solely on bank credits were invalid.
Upholding the appellate order, the Tribunal ruled that section 68 applies only to credits of the relevant year. Opening balances and prior period adjustments cannot be taxed as unexplained income in a subsequent year.
The Tribunal distinguished cases of jurisdictional defect and upheld the assessment where the initial notice was lawfully issued. The key takeaway is continuity of valid scrutiny proceedings despite AO change.
ITAT held that share capital additions cannot rest on an inspector’s report not shared with the assessee. Matter remanded for fresh examination in line with natural justice.
ITAT held that Section 68 cannot be invoked where donors are identified with names, PAN, ITRs, and confirmations. Such donations cannot be treated as unexplained cash credits or anonymous income.
The Tribunal ruled that additions based only on presumptions and low income of subscribers are invalid. Proper documentary evidence outweighs non-appearance under summons.
Silkina Commodeal Pvt. Ltd. Vs ITO (ITAT Kolkata) ITAT Kolkata Deletes ₹21.39 Cr Section 68 Addition—Share Capital & Premium Cannot Be Added Solely for Non-Appearance of Investors The Kolkata Bench of the ITAT allowed the appeal of Silkina Commodeal Pvt. Ltd. for AY 2008-09 and deleted the addition of ₹21.39 crore made under section 68 […]
The issue was whether reassessment notices issued after the extended period under TOLA were valid. The Tribunal held that post–Rajeev Bansal, notices beyond the surviving limitation are time-barred and void.
The Tribunal held that cash gifts received from relatives covered under section 56(2)(vii) cannot be taxed as unexplained credits. Once identity, creditworthiness, and genuineness are proved, section 68 has no application.
The case examined whether the Assessing Officer could reject a DCF valuation. The Tribunal held that commercial valuation choices, if legally prescribed and supported, cannot be second-guessed.
