Case Law Details
Brief Facts and Question of Law:
Brief Facts of the Assessee:
The Assessee was engaged in the manufacturing of readymade garments and export to foreign countries. The Assessee had filed the Income Tax Return, declaring an income of Rs. 11,82,236/- which was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). When the case was selected for scrutiny, the Assessing Officer (hereinafter referred to as “the AO”) noticed that the Gross Profit ratio was lesser as compared to last year. Also the AO selected nine creditors for which he required confirmed copies of Accounts.
The AO served notices u/s 133(6) of the Act on the selected creditors but were returned unserved. Hence the AO added back the closing balance of those creditors amounting to Rs. 3,57,17,506/- to the Income of the Assessee u/s 68 of the Act treating the same as unexplained cash credits. Please become a Premium member. If you are already a Premium member, login here to access the full content.
