The Madhya Pradesh High Court held that where a party obtains a certified copy of an arbitral award, limitation for an application under Section 34 of the Arbitration and…
Advance Payment Not Unexplained Credit: ITAT Deletes ₹2 Cr Addition u/s 68 of Income Tax Act
Update / Judgement Date
06 Feb 2024
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Author
Team — WCP Legal Desk
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1 min read
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The ITAT deleted an addition under Section 68 of the Income Tax Act, ruling that advance payment cannot be treated as unexplained credit. The ITAT found that the taxpayer had provided sufficient evidence to explain the source of the funds. The decision provides clarity on the treatment of advance payments and reinforces the importance of proper documentation. The ruling highlights the need for proper legal basis in tax assessments. This case underscores the importance of following established guidelines in tax adjudication.