Treating outstanding sub-contract expense as unexplained u/s. 68 without specific reason is not tenable

Nikshep Infra Projects Vs ITO (ITAT Bangalore) ITAT Bangalore held that disallowing outstanding sub-contract expenses payable under section 68 of the Income Tax Act as unexplained cash credit without specific reasoning and without pointing out defects in books of accounts is not justifiable. Accordingly, appeal is allowed and disallowance is deleted. Facts- The present appeal has been filed by the appellant. It is mainly contested that CIT(A) erred in not considering that the Assessing officer had made arbitrary addition of the amount payable to Sub-contractors of Rs. 15,03,62,905 as Unexplai...