Addition u/s 68 was justified in respect of unexplained creditors shown as bogus

ITO Vs Sri Tadi Vasudeva Rao (ITAT Visakhapatnam)

Conclusion:

AO was justified in making addition under section 68 of credit balance showing in assessee’s books of accounts against the Nil balance shown by the creditors in their books of accounts as on verification of the books of accounts of the creditor, it was found that there was no balance outstanding against assessee and the same indicated that the credit balance shown in the books of the assessee was bogus.Please become a Premium member. If you are already a Premium member, login here to access the full content.