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BANGALORE, JUNE 09, 2010: SECTION 68 is one of the most widely invoked Sections
of the Indian Income Tax Act. It is often invoked to explain the unexplained
credit or investment. In the instant case, the issue is - Whether AO has power
to examine the genuineness of brought forward trade creditors under the
provisions of section 68. And the answer is YES. What if the assessee fails to
prove the authenticity of brought forward trade creditors? The answer is the
addition in the hands of the assessee.