Liability payable as a consequence of trading transaction cannot be added U/s. 68

ITO Vs Ashok Transport Co. (ITAT Jodhpur)

There is a difference between credit representing a liability payable by the assessee and a credit representing monies received from another person. It is because of this distinction a liability which arises as a consequence of any purchase resulting in a corresponding credit to the account of the supplier cannot be added u/s. 68 of the Act, taxguru.in more so, when the purchase has been accepted as genuine. In other cases involving actual receipt of money, the provisions of sec. 68

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