Share capital and member deposits wrongly clubbed: ITAT remands matter back to AO for de novo verification

The article reports on an ITAT decision wherein the assessing officer erroneously combined share capital and member deposits under unexplained cash credits. The Tribunal found this approach unjustified and remanded the matter back for fresh examination. The ruling underscores the importance of segregating different financial instruments based on their nature and source. It also reiterates that assessments must be based on verifiable facts and documents rather than assumptions. The article is relevant for taxpayers and professionals dealing with scrutiny under Section 68 of the Income Tax Act.