Case Law Analysis
|Income Tax Appellate Tribunal
Section 68 IT Act | Book Entries Without Cash Flow or Genuine Transactions Cannot Be Taxed as Unexplained Income : ITAT Mumbai
ITAT Mumbai rules that mere book adjustments between group companies, without actual cash flow or proof of genuineness, do not constitute unexplained income under Section 68 of the Income Tax Act. The assessee’s failure to substantiate creditworthiness and transaction authenticity led to the deletion of additions.