If creditors are found bogus then addition can be made u/s 68 or u/s 41(1)

Brief: – ITAT Delhi has held in the case of Perfect Paradise Emporium Pvt. Ltd vs. ITO that If creditors are found bogus then the amount can be added back to income u/s 68 as unexplained cash credits or us 41(1) as business income.

Facts of the case:

The assessee filed its ROI declaring total income of Rs 46,924/-.The case was selected for scrutiny and AO made an addition of Rs 19,61,036/- on alleged fictitious creditors . Asses

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