Log In

| Recover password


Section 68 provisions is most common to every income tax assessment where the AO could seek confirmation and explanation on the liabilities/creditors shown in the balance sheet. To invoke section 68 it is however incumbent upon the AO to bear in mind the ratio of the decision in CIT v. Orissa Corporation P. Ltd. [1986] 159 ITR 78 (SC) which is to examine and inquire the creditors which are named and disclosed in the documents and disclosures by the assessee. By the Orissa Corp ruling further if the lending parties are income tax assessees and this fact is made known by the assessee to his AO then the assesses initial burden stands discharged. In (2023] 457 ITR 430 (Kar) the AO however passed an parte order with additions u/68 but without complying with the ratio of the decision in Orissa Corporation case only therefore to be rendered as desiring a set aside.

Leave a Reply

Your email address will not be published.

error: Do not copy the content of this website.