Addition for sundry creditors without rejecting purchase are not sustainable

M/s. Gulf Steel & Minerals Vs ITO (ITAT Ranchi)

The AO is wrong in making the impugned addition on account of sundry creditor, which are related to purchases and the same also accepted by the AO as genuine. Without rejecting the purchases, the sundry creditors cannot be treated as income of assessee  Therefore, addition made by AO who was actually confused, was deleted.

FULL TEXT OF THE ITAT JUDGMENT

This appeal by Assessee is against the order dt. 18-12-2015 of CIT(A), Jamshedpu

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