https://www.taxtmi.com/caselaws?id=450744 ITAT Jodhpur held that opening capital cannot be added as unexplained investment under Section 69. The AO erroneously treated opening cash balance as undisclosed income, assuming nil opening balance based on suspicion. The Tribunal ruled that credits carried forward from preceding years cannot be added in the current year, as the provision applies only to credits found during the relevant previous year. Following precedent, opening capital shown as closing capital of earlier year and carried forward cannot constitute investment or cash credit of the current assessment year. Addition deleted in favor of assessee. en-us Thu, 07 Mar 2024 00:00:00 +0530 Mon, 16 Dec 2024 12:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450744 ITAT Jodhpur held that opening capital cannot be added as unexplained investment under Section 69. The AO erroneously treated opening cash balance as undisclosed income, assuming nil opening balance based on suspicion. The Tribunal ruled that credits carried forward from preceding years cannot be added in the current year, as the provision applies only to credits found during the relevant previous year. Following precedent, opening capital shown as closing capital of earlier year and carried forward cannot constitute investment or cash credit of the current assessment year. Addition deleted in favor of assessee. Case-Laws Income Tax Thu, 07 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450744