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Income Tax - Highlights / Catch Notes

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The ITAT Surat dealt with a case involving unexplained credit ...


ITAT restricted addition u/s 68 to 0.75% of transaction value due to lack of details, setting a consistent view based on previous cases.

Case Laws     Income Tax

May 23, 2024

The ITAT Surat dealt with a case involving unexplained credit u/s 68. The assessee received a commission of 0.50% per Rs. 100 but failed to provide details of transactions or persons involved. The Tribunal noted the absence of specific details and the peculiar nature of the business. Previous cases were cited where additions were restricted to 0.125% to 0.35%. Following a consistent approach, the Tribunal limited the addition to Rs. 75 per lakh, equivalent to 0.75% for Rs. 100. The total credit in the bank account was found to be Rs. 2.07 crores after considering cheque and cash deposits. The Tribunal allowed the appeal partly, directing the assessing officer to adjust the assessment accordingly.

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