TMI Blog2009 (7) TMI 1247X X X X Extracts X X X X X X X X Extracts X X X X ..... ring an income of ₹ 4,10,544/-. This return was processed under Section 143(1)(a) and the case was selected for scrutiny thereafter. Notice under Section 143(2) was issued to the assessee. The Assessing Officer doubted the veracity and genuineness of sundry creditors of an amount of ₹ 1 lakh and above, as shown by the assessee in its books of accounts. He found that those parties/sundr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid creditors shown in the books of accounts, are the sundry creditors, from whom as per the assessee, he had made purchases. They are thus the creditors. The Tribunal found that even if it is accepted that the books were rejected, significantly the Assessing Officer had not disallowed the purchases from those creditors nor the trading results have been disturbed. In this behalf, learned co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion that the approach of the ITAT was correct inasmuch as the Assessing Officer did not consider this aspect while making additions of the sundry creditors under Section 68 of the Income Tax Act. As there was no case for disallowance for corresponding purchases, no addition could be made under Section 68 inasmuch as it is not in dispute that the creditors outstanding related to purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X
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