Re: Addition u/s 68
Respected sir
The addition has been made under section 68 as alleged fake loans
The said loan has been fully repaid and interest has also been paid on the said loan and TDS is also deducted
If the assessee buys peace under vivad se vishwas scheme
Can he capitalize the alleged fake loan which is already repaid by crediting this in p&l or by any other way because the income can be taxed only once
Will there be any implications w.r.t benami law and gst
And what are the other issues which should be brought into consideration before entering into the scheme
There is also a favourable ruling of the in other case jurisdictional itat where the the creditor co. Is treated as genuine and loan from it as genuine loan
Aren’t subordinate authorities bound by decision of itat
Each case has to be decided on facts . If the facts are identical the CIT (A) is bound to follow the order of the ITAT . As per the scheme there is no provision of capitalisation. The issue is taken up before the CBDT , we hope some clarification may be expected . If the amount is settled there will not be any implications under Benami Act or GST.
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