Limited Scrutiny: Advance from customers cannot be treated as sundry creditors

Advertisement M. M. Engineers and Consultants Vs PCIT (ITAT Cuttack) At the outset, a perusal of the balance sheet clearly shows that there is nothing in the balance sheet of the assessee under the term ‘sundry creditors’. We are alive to the fact that this is a limited scrutiny assessment, which is done under CASS. In the limited scrutiny direction, the direction was to verify the large increase in the sundry creditors with respect to the turnover as compared to the preceding year. The hands of the AO are, at the outset, tied when the terms sundry creditors were used in the lim...