Can s.68 be applied on amount received from Sundry Debtor, Income Tax

[ROHIT GOEL]

Assessee making sales to a customer and a sum of ₹ 50,000/- is appearing as debtor in books against sales. Customer making payment through DD amounting ₹ 30,000/- which was credited in the account of Debtor resulting a debit balance of ₹ 20,000/-. Lateron, AO doubt the genuineness of debtor on the ground that debtor is a suspicious trader or debtor was involved in providing accomodation entries. Can such credit which is already recognised as Income be taken as Income u/s 68 and leading to charge u/s 115BBE.

In continuation whether s.68 is applicable on Credit Entries at any point during the year i.e. liability items of balance sheet or also applicable to profit and loss item like sales or other revenue in profit and loss account.

Please try to answer ignoring the amendment in s.115BBE w.e.f. 1-4-2016.

Any case law to support your opinion

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

Whether the assessee explained the credit to the Assessing Officer?