Addition u/s 68 - assessee has received share application money ...

Assessee's Unexplained Share Application Money Under Scrutiny: Section 68 Invoked Due to Questionable Creditworthiness and Transaction Genuineness.

January 20, 2022

Case Laws     Income Tax     AT

Addition u/s 68 - assessee has received share application money as unexplained - In the instant case, assessee has only established identity of the creditor, credit-worthiness and genuineness of the transaction with the assessee have come under serious cloud, and gave rise to reasonable belief in the mind of the AO that the assessee has indulged in a dubious transaction to launder its undisclosed income. Therefore, in our view, it is a fit case where provisions of section 68 of the Act should be invoked, which the ld.AO has rightly done so - Additions confirmed - AT

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