https://www.taxtmi.com/caselaws?id=447664 The ITAT Ahmedabad ruled against the revenue in a case involving addition under section 68 for unexplained cash credit related to preference share capital. The AO had questioned the genuineness of the transaction as the investing company showed low income and funds were immediately transferred to other companies. The tribunal held that the AO failed to conduct independent inquiry to disprove evidence provided by the assessee and did not appreciate that the company's business involved strategic investments in subsidiaries. The tribunal found the transactions were not circular when viewed holistically and deleted the addition. Consequently, the section 115BBE tax calculation became irrelevant. en-us Fri, 29 Dec 2023 00:00:00 +0530 Mon, 01 Jan 2024 18:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447664 The ITAT Ahmedabad ruled against the revenue in a case involving addition under section 68 for unexplained cash credit related to preference share capital. The AO had questioned the genuineness of the transaction as the investing company showed low income and funds were immediately transferred to other companies. The tribunal held that the AO failed to conduct independent inquiry to disprove evidence provided by the assessee and did not appreciate that the company's business involved strategic investments in subsidiaries. The tribunal found the transactions were not circular when viewed holistically and deleted the addition. Consequently, the section 115BBE tax calculation became irrelevant. Case-Laws Income Tax Fri, 29 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447664