https://www.taxtmi.com/caselaws?id=766589 ITAT Ahmedabad allowed the assessee's appeal partly. The tribunal deleted additions under Section 68 for unexplained cash credits, holding that the assessee discharged its burden by providing confirmations, bank statements, and ITRs of share applicants. The AO failed to conduct further inquiries after rejecting documents, which was contrary to established principles. Since no business commenced, Section 68 was inapplicable. Alternative addition under Section 56(2)(viib) was also deleted as AO arbitrarily ignored DCF method. However, disallowance of expenses was upheld as assessee failed to demonstrate direct nexus between expenditure and interest income earned. en-us Tue, 25 Feb 2025 00:00:00 +0530 Fri, 28 Feb 2025 08:23:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766589 ITAT Ahmedabad allowed the assessee's appeal partly. The tribunal deleted additions under Section 68 for unexplained cash credits, holding that the assessee discharged its burden by providing confirmations, bank statements, and ITRs of share applicants. The AO failed to conduct further inquiries after rejecting documents, which was contrary to established principles. Since no business commenced, Section 68 was inapplicable. Alternative addition under Section 56(2)(viib) was also deleted as AO arbitrarily ignored DCF method. However, disallowance of expenses was upheld as assessee failed to demonstrate direct nexus between expenditure and interest income earned. Case-Laws Income Tax Tue, 25 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766589