2010 (1) TMI 1171 - AT - Income Tax

Summary

Issues involved: Addition of unexplained cash credit u/s 68.

Issue: Addition of unexplained cash credit u/s 68.

The appellant, an individual, declared a total income and claimed exemption u/s 54F for long term capital gains from the sale of shares. The Assessing Officer treated the transactions as bogus, adding the sale consideration to the total income u/s 68. The CIT (A) upheld this decision. The Tribunal referred to a similar case where such additions were deleted due to lack of evidence and application of mind by the Assessing Officer. The Tribunal ruled in favor of the appellant, deleting the addition u/s 68 and directing a review of the exemption claim u/s 54F.

Decision:

The Tribunal ruled in favor of the appellant, deleting the addition u/s 68 and directing a review of the exemption claim u/s 54F.