The Tax Publishers2020 TaxPub(DT) 5414 (Visakhapatnam-Trib)

INCOME TAX ACT, 1961

Section 68

Since no credit was made in the year under consideration of share application money received, no addition could be made in the hands of the assessee under section 68 as the addition was required to be made in the year in which the credits were found credited in the books of account, but not in later years.

Income from undisclosed sources - Addition under section 68 - Share application money received - No credit made in the year under consideration

AO made addition of share application money received by assessee from the company of which source of share capital was neither genuine nor the company was having net worth. Held: As per the provisions of section 68, the addition was required to be made in the year in which the credits were found credited in the books of account but not in later years. Therefore, since no credit was made in the year under consideration, there was no case for making the addition in the hands of the assessee under section 68.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13



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