The Assessing Officer questioned the genuineness of lease deposits and booking advances received in earlier years. The Tribunal held that section 68 applies only to credits appearing during the relevant previous year. Since the impugned amounts represented opening balances received through banking channels in earlier years and no fresh credit had arisen during the year under consideration, no addition could be made under section 68. (AY. 2020-21).
ITO v. N. Kumar Housing and Infrastructure (P.) Ltd. (2025) 125 ITR 401 / 172 taxmann.com 428 (Nagpur)(Trib.)
S. 68: Cash credits-Opening balances-No fresh credit during relevant previous year-Addition not sustainable.
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