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| The Tax Publishers2020 TaxPub(DT) 0577 (Del-Trib) INCOME TAX ACT, 1961
Section 68
It is an admitted fact that AO had not doubted purchases, sales and trading results and books of account have not been rejected. Assessee had also substantiated with evidence that payments were made in subsequent years to concerned parties and assessee was also making regular purchases from said parties in subsequent years and revenue had not taken any step to reopen assessment. Therefore, section 68 could not be invoked in relation to such outstanding sundry creditors.
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Income from undisclosed sources - Addition under section 68 - Outstanding sundry creditors - Inspector's report showed that parties were not doing any regular business--AO not having doubted purchases, sales and trading results
AO doubted outstanding sundry creditors on the ground that Inspector's report showed that parties were not doing any regular business. It is the submission of the Counsel for the assessee that since the AO has accepted the purchase, sales and the trading results and has not rejected the book. Accordinlgy, AO made addition under section 68.Held: It is an admitted fact that AO had not doubted purchases, sales and trading results and books of account have not been rejected. Assessee had also substantiated with evidence that payments were made in subsequent years to concerned parties and assessee was also making regular purchases from said parties in subsequent years and revenue had not taken any step to reopen assessment. Therefore, provisions of section 68 could not be invoked in relation to such outstanding sundry creditors.
Relied:Pr. CIT v. Sh. Kulwinder Singh (2017) 298 CTR 389 (P&H) : 2017 TaxPub(DT) 5079 (P&H-HC) and CIT v. Pancham Dass Jain (2006) 205 CTR 444 (All) : 2006 TaxPub(DT) 1807 (All-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
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