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 . Assessee had not produced the confirmation before AO so he took the creditors on oath who denied the amount which was shown by the assessee in its books of account, So...