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source of source

2 articlesLatest May 2026
Section 68 IT Act | ITAT Delhi Holds 'Source of Source' Not Required for Loan Genuineness if Banking Channel & Lender’s Financials Prove Creditworthiness : ITAT Delhi
Case Law Analysis
|Income Tax Appellate Tribunal

Section 68 IT Act | ITAT Delhi Holds 'Source of Source' Not Required for Loan Genuineness if Banking Channel & Lender’s Financials Prove Creditworthiness : ITAT Delhi

ITAT Delhi dismisses Revenue’s appeal, ruling that for Section 68 IT Act, the assessee need not prove the 'source of source' if the lender’s creditworthiness is established through banking channels and financial records. The decision clarifies the scope of unexplained credit provisions, impacting tax assessments for loans and financial transactions.

Section 68 IT Act | Capital Gains Cannot Be Recharacterized as Unexplained Cash Credit If Source of Source Proven : ITAT Pune
Case Law Analysis
|Income Tax Appellate Tribunal

Section 68 IT Act | Capital Gains Cannot Be Recharacterized as Unexplained Cash Credit If Source of Source Proven : ITAT Pune

ITAT Pune rules that once the assessee establishes the identity, capacity, and source of the source of funds (e.g., sale of promoter shares), Section 68 cannot be invoked to treat legitimate capital gains as unexplained cash credits. This safeguards taxpayers from arbitrary recharacterization of income where the transaction trail is transparent.

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