AO made addition to assessee’s income under S. 41(1) in respect of difference between creditors recorded in his books vis-a-vis balance in books of creditors. Tribunal held that sales and purchases made by assessee and thus balance of creditors w was not doubted hence addition is held to be not valid. (AY. 2000-01 to 2004 -05)
Tum Nath Shaw. v. ACIT (2019) 175 ITD 45 (Kol.)(Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability–Difference between creditors recorded in his books vis-a-vis balance in books of creditors-Sales and purchases not doubted–Addition is held to be not justified.