Unexplained Credits Must Be Taxed in the Hands of Ultimate Beneficiaries, Not Conduit Companies: Delhi HC [Read Order]
The Court upheld the legal precept that Section 68 taxation must be based on actual revenue and legitimate recipients rather than just pass-through entity paper transactions.
By Navasree A.M - On May 28, 2025 1:33 pm - 2 mins read
The Delhi High Court held that unexplained credits routed through conduit companies cannot be taxed in their hands, but must be assessed in the hands of the actual beneficiaries. Justices Vibhu Bakhru and Tejas Karia dismissed a batch of appeals filed by the Revenue against the order of the Income Tax Appellate Tribunal (ITAT), which…
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