The Tribunal held that section 68 applies only to credits recorded during the relevant previous year and not to opening balances brought forward from earlier years. Accordingly, the addition under section 68 in respect of opening balances of unsecured loans was held to be unsustainable. (AY 2020-21).
ACIT v. Ramasubbu Minnalkodi (2025) 238 TTJ 337 (Chennai)(Trib.)
S. 68: Cash Credits-Method of accounting-Opening balance of unsecured loans cannot be taxed under the section. [S. 145]
Leave a Reply