No addition U/s. 68 if credits are not related to relevant Assessment year

Brief of the case Assesse was a dealer of bakery products, filed its return. During assessment, it was found that assesse represented certain amount towards sundry creditors in its books. A.O. treated sundry creditors to tune of Rs. 65 lacs, as non-existent, and therefore added back to assesse’s income . CIT(A) upheld AO’s order. Assesse challenged said order before tribunal, on ground that neither order of A.O. , nor order of CIT (A), was clear as to whether addition was being made under Section 68 or Section 41(1). Tribunal held that since credit entries do not relate to previous year re...