Mere Non-response from creditors cannot be treated as furnishing of inaccurate particulars of income

Royal Rubber Works Vs ITO (ITAT Delhi) Undisputedly, the addition based on which the Assessing Officer imposed penalty under section 271(1)(c) of the Act was on account of sundry creditors. While deciding the quantum appeal of the assessee, the Tribunal has deleted the major part of the addition, accepting assessee’s submission that such amount was not credited in the books of account during the year. Addition of Rs.3,43,289/- was sustained only on the ground that it was credited to the books of account during the year. Before us, learned counsel for the assessee has submitted that the Asses...