Section 41 addition cannot be made on basis of unsigned balance sheets

Advertisement Rajshree Builder & Promoters Pvt. Ltd. Vs ITO (ITAT Delhi) Conclusion: Addition by AO under section 41(1) as liability of ‘Trade Payables’ written off was not justified as the balance-sheets filed by assessee were neither signed by the Auditor nor by the Director and, therefore, the same were not reliable and assessee had failed to produce any confirmation to the effect that the assessee received payment from M/s. Omac as interest free unsecured loan. Held: Assessee-company was engaged in the real estate business and for the year under consideration filed return of inc...