Old Trade Payables Cannot Be Taxed Again Under Section 68: ITAT Chennai

Arusuvai Food Processors Pvt. Ltd. Vs ITO (ITAT Chennai) No Fresh Credit, No 68- No 68 Addition on Old Balances- Audited Brought-Forward Liabilities Cannot Be Taxed Again u/s 68 The Assessee, engaged in trading of pulses & food grains, appealed against additions u/s 68 & penalty u/s 271(1)(c). AY 2015-16 & 2016-17 – Additions u/s 68: AO noticed huge trade payables shown in name of Director, Shri V. Elangovan (₹3.62 Cr & ₹2.37 Cr). Though Elangovan confirmed balances, AO doubted his creditworthiness & treated liabilities as unexplained cash credits u/s 68. CIT(A) uphe...