https://www.taxtmi.com/caselaws?id=458868 The ITAT AGRA held that additions made by the AO under section 69 for alleged unexplained cash credits were legally incorrect. Section 69 applies to unexplained investments, not cash credits. Since no investment was alleged, section 69 was not applicable. The addition could only be made under section 68, which requires maintenance of books of account. As the assessee's gross receipts were below Rs. 40 lacs and declared profit was 8% or more under section 44AD, no books were required to be maintained. Without books of account, no addition for unexplained cash credits could be made. The AO failed to conduct proper inquiries despite having bank statements and confirmations from lenders. The assessee's appeal was allowed. en-us Wed, 28 Feb 2018 00:00:00 +0530 Tue, 19 Nov 2024 18:59:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458868 The ITAT AGRA held that additions made by the AO under section 69 for alleged unexplained cash credits were legally incorrect. Section 69 applies to unexplained investments, not cash credits. Since no investment was alleged, section 69 was not applicable. The addition could only be made under section 68, which requires maintenance of books of account. As the assessee's gross receipts were below Rs. 40 lacs and declared profit was 8% or more under section 44AD, no books were required to be maintained. Without books of account, no addition for unexplained cash credits could be made. The AO failed to conduct proper inquiries despite having bank statements and confirmations from lenders. The assessee's appeal was allowed. Case-Laws Income Tax Wed, 28 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458868