Restriction of Input Tax Credit under Rule 86A applies only to fraudulently or ineligible availed credit; mere wrongful recipient availment is insuffi...
Business reorganisation requires recognition of successor's modified return; draft orders against dissolved transferor quashed and fresh review direct...
ITAT held that enhanced tax under Section 115BBE did not apply, following S.M.I.L.E. Microfinance Ltd., and the Revenue's challenge on that point failed. It also deleted the Section 68 addition because the impugned credit was supported by additional evidence showing a journal entry transferring a retiring partner's existing capital balance to an unsecured loan account, with no cash movement. The Tribunal found that the appellate authority had ignored the partner's capital account and ledger material, and that a mere book transfer of capital into unsecured loan did not constitute an unexplained cash credit. The assessee's appeal was allowed.
ITAT held that enhanced tax under Section 115BBE did not apply, following S.M.I.L.E. Microfinance Ltd., and the Revenue's challenge on that point failed. It also deleted the Section 68 addition because the impugned credit was supported by additional evidence showing a journal entry transferring a retiring partner's existing capital balance to an unsecured loan account, with no cash movement. The Tribunal found that the appellate authority had ignored the partner's capital account and ledger material, and that a mere book transfer of capital into unsecured loan did not constitute an unexplained cash credit. The assessee's appeal was allowed.
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