https://www.taxtmi.com/caselaws?id=753064 ITAT Delhi allowed the assessee's appeal regarding addition under section 68. The court held that mere journal entries for loan adjustments without actual receipt of money cannot constitute unexplained cash credit under section 68. The addition was erroneous as it involved only book entry transfers between accounts, not physical money flow. The tribunal emphasized that section 68 requires actual flow of funds, not just accounting entries. Additionally, prior period expenses related to a project starting in the current year were held allowable in the assessment year under consideration, despite invoices being raised in the previous year. en-us Wed, 22 May 2024 00:00:00 +0530 Fri, 24 May 2024 07:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753064 ITAT Delhi allowed the assessee's appeal regarding addition under section 68. The court held that mere journal entries for loan adjustments without actual receipt of money cannot constitute unexplained cash credit under section 68. The addition was erroneous as it involved only book entry transfers between accounts, not physical money flow. The tribunal emphasized that section 68 requires actual flow of funds, not just accounting entries. Additionally, prior period expenses related to a project starting in the current year were held allowable in the assessment year under consideration, despite invoices being raised in the previous year. Case-Laws Income Tax Wed, 22 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753064