ITAT Delhi rules no unexplained cash credit under Sec. 68; journal entries only. Allows project expenses despite earlier invoice.

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....The ITAT Delhi addressed an addition u/s 41(1) converted from u/s 68, focusing on whether there was actual receipt of money or just journal entries for account adjustments. The AR argued that the entries were for loan adjustments from a prior year. The tribunal found the CIT(A)'s conclusion erroneous as there was no actual receipt of money, only journal entries reflecting borrowed funds and liabilities transferred to M/s Vrinda Developers Pvt. Ltd. The tribunal held that the journal entry did not constitute unexplained cash credit u/s 68, as it was a book entry transfer without a real cash credit. Citing a similar case, the tribunal emphasized the need for actual flow of funds to trigger the explanation requirement. Additionally, the tribun.........