https://www.taxtmi.com/caselaws?id=755799 The ITAT Nagpur ruled in favor of the assessee regarding unexplained cash credit under Section 68. The tribunal held that when books of accounts are not rejected, no addition can be made under Section 68. Seventeen agriculturist lenders confirmed under Section 131 that they advanced cash for sand purchase from their agricultural income, with advances later repaid through banking transactions or adjusted against sand sales. The tribunal rejected the argument that agriculturists lacked standing to advance money for sand purchase, noting farmers often diversify income sources. Since advances were subsequently booked as income, no Section 68 addition was permissible. en-us Tue, 16 Jul 2024 00:00:00 +0530 Wed, 17 Jul 2024 14:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755799 The ITAT Nagpur ruled in favor of the assessee regarding unexplained cash credit under Section 68. The tribunal held that when books of accounts are not rejected, no addition can be made under Section 68. Seventeen agriculturist lenders confirmed under Section 131 that they advanced cash for sand purchase from their agricultural income, with advances later repaid through banking transactions or adjusted against sand sales. The tribunal rejected the argument that agriculturists lacked standing to advance money for sand purchase, noting farmers often diversify income sources. Since advances were subsequently booked as income, no Section 68 addition was permissible. Case-Laws Income Tax Tue, 16 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755799