https://www.taxtmi.com/highlights?id=92351 The ITAT upheld deletion of the addition under section 68 relating to forfeiture of share application money, holding that forfeiture constitutes a capital receipt and cannot be taxed as the assessee's income; the AO may, however, reopen and assess suspicious shareholders individually. The ITAT and HC affirmed that interest received by the assessee arose from its business operations and is assessable as business income rather than under "Income from Other Sources," endorsing CIT(A)'s view. The appellate authority also sustained deletion of ad hoc disallowance of expenditure, finding the restriction of claimed expenses to an arbitrary Rs. 50,000 untenable. Overall, the AO's additions were directed to be deleted. en-us Tue, 09 Sep 2025 08:38:59 +0530 Tue, 09 Sep 2025 08:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=92351 The ITAT upheld deletion of the addition under section 68 relating to forfeiture of share application money, holding that forfeiture constitutes a capital receipt and cannot be taxed as the assessee's income; the AO may, however, reopen and assess suspicious shareholders individually. The ITAT and HC affirmed that interest received by the assessee arose from its business operations and is assessable as business income rather than under "Income from Other Sources," endorsing CIT(A)'s view. The appellate authority also sustained deletion of ad hoc disallowance of expenditure, finding the restriction of claimed expenses to an arbitrary Rs. 50,000 untenable. Overall, the AO's additions were directed to be deleted. Highlights Income Tax Tue, 09 Sep 2025 08:38:59 +0530 https://www.taxtmi.com/highlights?id=92351