ITAT Delhi Cuts Bogus Creditors Addition from ₹3.50 Cr to ₹45 Lakh

Smt. Sudha Loyalka Vs ITO (ITAT Delhi) ITAT Delhi Cuts ₹3.50 Cr Bogus Creditor Addition to ₹45 Lakh – Only 25% Disallowance Sustained Cash Payments Below ₹20K Raise Doubts – Tribunal Partly Upholds Disallowance HC Remand Leads to Relief – ITAT Applies Section 37, Narrows Addition to ₹45 Lakh Background Assessee: Smt. Sudha Loyalka, proprietor of M/s Tirupati Industries, engaged in fabric & garment trading. Scrutiny Reason: Large sundry creditors (₹6.77 Cr). AO’s Findings (143(3), 18.03.2015): -Issued notices u/s 133(6) to 27 creditors (₹3.48 Cr). -20 notices (₹2.7...