sec 68
This query is : Resolved
26 January 2011
hello all,
plz its very urgent. plz guide me
my questions is provisions of cash credit u/s 68 says that any amount credited in the books of accounts for ANY previous year ........... cash credit.
now when any can AO disallow opening balance. in other words credit made in year 03-04 balance c/d and now section 68 applied for that opening balance amount for year of 2006-07. is it possible??
what does the terms specify.. "credited in books" and "any previous year"
plz its very urgent. plz guide me
my questions is provisions of cash credit u/s 68 says that any amount credited in the books of accounts for ANY previous year ........... cash credit.
now when any can AO disallow opening balance. in other words credit made in year 03-04 balance c/d and now section 68 applied for that opening balance amount for year of 2006-07. is it possible??
what does the terms specify.. "credited in books" and "any previous year"
26 January 2011
Tax assessment isnot the subject of accounting. It is not the subject matter whether cash credit is appearing in opening balance of cash. IF the AO any cash credit during the PY , that may be taken as income. For previous years, that will relates to that particular year.
Message likes :
1 times
26 January 2011
Sec. 68 is not applicable in your case. It applies only for the transactions entered into during the year. Even in one of the case it was held that credit entries appearing in the bank passbook of assessee which he is unable to explain even then 68 does not apply as bank pass is not the books of account of assessee.
Message likes :
1 times
26 January 2011
Conditions for taxing tax credits, among others, are as follows:-
i) there has to be a credit of amounts in the books maintained by the assessee.
ii) such credit has to be a sum of money during the previous year.
The given issue does not fit into the above conditions,being opening balance, and hence A.O's action will not sustain in the eye's of law.
i) there has to be a credit of amounts in the books maintained by the assessee.
ii) such credit has to be a sum of money during the previous year.
The given issue does not fit into the above conditions,being opening balance, and hence A.O's action will not sustain in the eye's of law.
Message likes :
1 times
Guest
Guest
(Expert)
28 January 2011
In your case, sec. 68 is not applicable in a genuine case.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Tds on building rent monthly
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
