Addition under section 41(1) cannot be made Adhoc or on Estimate’s

JCIT (OSD) Vs Yashmaan Pathak (ITAT Mumabi) No scope of  adhoc or estimated addition u/s. 41(1) &  the entire conditions precedent for invoking section 41(1) has to be fulfilled. Assessee has filed his return of income   and the  AO during scrutiny issued show cause notice to the   assessee to file details and confirmation of the Sundry Creditors as appearing in the balance sheet. AO despite noting the details of creditors having been filed by assessee held that, 10% of the entire amount shown under the head “Sundry Creditors” should be added u/s 41(1) of the Act holding that as...