Addition u/s 68 - Unexplained cash deposits - Provision to ...

Section 68: Closely held companies must verify shareholder fund sources; individual taxpayer's unexplained cash deposit addition removed.

October 22, 2021

Case Laws Income Tax AT

Addition u/s 68 - Unexplained cash deposits - Provision to section 68 inserted w.e.f. 1.4.2013 requires the assessee to prove the source of source. This proviso shall apply to funds collected by a closely held company from resident shareholders. Hence the same will not be applicable to the assessee as she is an individual.In our opinion, the assessee discharged the burden cast upon her to explain the identity of parties, capacity and genuineness of the transaction. Accordingly, this addition is deleted. - AT

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Addition u/s 68 - Unexplained cash deposits - Provision to ...

Section 68: Closely held companies must verify shareholder fund sources; individual taxpayer's unexplained cash deposit addition removed.

October 22, 2021

Case Laws Income Tax AT

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