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| The Tax Publishers2020 TaxPub(DT) 1465 (Del-HC) INCOME TAX ACT, 1961
Section 68
Where investor company was one of group entities of two companies having substantial returned income in year in question, therefore, there was no reason to doubt either the creditworthiness of the investor or the genuineness of the transaction, so as to make addition under section 68.
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Income from undisclosed sources - Addition under section 68 - Investors having substantial returned income - Creditworthiness of investor whether could be doubted
Revenue challenged order of Tribunal wherein the appeal preferred by revenue was rejected. Issue was as regards addition of Rs. 20 crores under section 68 on account of credit received from two firms namely Rangoli Buildtech Pvt. Ltd. and Epic Developers Pvt. Ltd. Held: Investor company, namely, Epic Developers Pvt. Ltd. was one of the group entities of Benda Amtek Ltd. and Amtek Auto Ltd. and both had substantial returned income in the year in question of Rs. 1,28,24,076 and Rs. 10,93,50,350. Therefore, there was no reason to doubt either the creditworthiness of the investor or the genuineness of the transaction.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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