No addition u/s 41 for opening balance of trade payables in absence of verification of parties

ACIT Vs Delmos Aviation Pvt. Ltd. (ITAT Delhi) Conclusion: AO without bringing any material or reasons before making any addition, simply added back the opening balances of the trade payables without making any verification from the parties and he had failed to discharge the preliminary onus and had made the addition in summary manners, therefore, CIT(A) had committed no error in deleting the addition made u/s 41. Held: During the assessment proceedings, assessee was asked to furnish comparative details of the balances of trade payables for last three years and also to submit confirmation let...