https://www.taxtmi.com/caselaws?id=286597 The Court ruled in favor of the appellant, setting aside the addition of Rs. 5,00,000 as unexplained income under section 68 of the Income Tax Act. Emphasizing the need to trace funds to genuine investors, the Court referenced the Lovely Exports case and reiterated that funds from specific investors should not be treated as undisclosed income. The Court highlighted that the Department can proceed against individuals if the source of funds is traceable, absolving the company from penalties under section 68. The appellant successfully demonstrated that the shareholder's payment towards share application money had a legitimate source, resulting in the Court's decision in their favor. en-us Thu, 16 Jun 2016 00:00:00 +0530 Thu, 05 Mar 2020 09:59:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=286597 The Court ruled in favor of the appellant, setting aside the addition of Rs. 5,00,000 as unexplained income under section 68 of the Income Tax Act. Emphasizing the need to trace funds to genuine investors, the Court referenced the Lovely Exports case and reiterated that funds from specific investors should not be treated as undisclosed income. The Court highlighted that the Department can proceed against individuals if the source of funds is traceable, absolving the company from penalties under section 68. The appellant successfully demonstrated that the shareholder's payment towards share application money had a legitimate source, resulting in the Court's decision in their favor. Case-Laws Income Tax Thu, 16 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=286597