https://www.taxtmi.com/caselaws?id=795760 Section 68 applies only where a credit represents actual money, money's worth, or another real financial inflow. Reclassifying salary payable as partners' capital through a reversible journal entry, without receipt of funds or assets, merely substitutes one liability for another and does not create unexplained income. Salary paid to relatives of partners requires a factual basis, such as comparables or evidence of excessive remuneration, before disallowance; operational and managerial responsibilities may support the payment. Capital contributions confirmed by identifiable partners are not assessable as unexplained income of the firm; concerns about source or creditworthiness are examinable in the partners' individual assessments. en-us Wed, 22 Jul 2026 00:00:00 +0530 Mon, 27 Jul 2026 08:27:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795760 Section 68 applies only where a credit represents actual money, money's worth, or another real financial inflow. Reclassifying salary payable as partners' capital through a reversible journal entry, without receipt of funds or assets, merely substitutes one liability for another and does not create unexplained income. Salary paid to relatives of partners requires a factual basis, such as comparables or evidence of excessive remuneration, before disallowance; operational and managerial responsibilities may support the payment. Capital contributions confirmed by identifiable partners are not assessable as unexplained income of the firm; concerns about source or creditworthiness are examinable in the partners' individual assessments. Case-Laws Income Tax Wed, 22 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795760