https://www.taxtmi.com/caselaws?id=775440 The ITAT Delhi held that the addition under section 68 for undisclosed credit from the sale of shares was not justified. The assessee had adequately explained the source of funds, with the amount shown as advance in financial statements for FY 2016-17 and the sale recorded in FY 2018-19 upon execution of the Compromise Deed. The AO did not question the identity, creditworthiness, or genuineness of the transaction. Since all three conditions under section 68 were satisfied, the addition was unwarranted. The sale was supported by a Share Purchase Agreement, and similar treatment was accepted for other shareholders. Consequently, the addition under section 68 was deleted and the appeal was allowed. en-us Wed, 23 Jul 2025 00:00:00 +0530 Fri, 25 Jul 2025 08:28:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775440 The ITAT Delhi held that the addition under section 68 for undisclosed credit from the sale of shares was not justified. The assessee had adequately explained the source of funds, with the amount shown as advance in financial statements for FY 2016-17 and the sale recorded in FY 2018-19 upon execution of the Compromise Deed. The AO did not question the identity, creditworthiness, or genuineness of the transaction. Since all three conditions under section 68 were satisfied, the addition was unwarranted. The sale was supported by a Share Purchase Agreement, and similar treatment was accepted for other shareholders. Consequently, the addition under section 68 was deleted and the appeal was allowed. Case-Laws Income Tax Wed, 23 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775440