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2016 (8) TMI 469 - AT - Income TaxAddition u/s 68 - addition towards credits brought forward from last year - Held that:- A plain reading of section 68 of the Act makes it clear that any sum found credited in the books of accounts of the assessee, assessee offers no explanations about nature and source of the credits, then the sums found credited in the books of accounts is taxable during that financial year. In the present case on hand, on perusal of the facts available on record, we noticed that the assessee has accepted loans from various individuals during the previous financial year 2008-09. During the financial year 2009-10 the assessee has re-grouped the various loan accounts into these 5 creditors’ accounts by passing necessary journal entries. We further noticed that there is no fresh credit accepted during the current financial year. All the credits are transferred from the previous financial year. Therefore, we are of the view that the A.O. was not correct in making additions towards brought forward credits during the financial year 2009-10. The CIT(A) after considering the relevant details deleted the additions made by the A.O. We do not see any error or infirmity in the order passed by the CIT(A). - Decided against revenue
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