Addition u/s 68 unsustainable regarding trading liabilities with availability of corresponding purchases

ACIT Vs Debashis Roy (ITAT Kolkata) ITAT Kolkata held that liabilities which are incurred as trading liabilities with corresponding purchases cannot be subject matter of addition under section 68 of the Income Tax Act. Facts- AO during the course of assessment proceedings observed that the assessee has shown huge sundry creditors of Rs.4,35,27,806/- as on 31/03/2015 and called upon the assessee to furnish details thereof and also prove the genuineness of these liabilities. Accordingly, AO issued notices u/s 133(6) to 39 parties on 14/11/2017 on test check basis. However, 26 notices issued to t...