Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Advance Payment Not Unexplained Credit: ITAT Deletes ₹2 Cr Addition u/s 68 of Income Tax Act
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.