Non-Response to Notices Does Not Make Creditors Bogus: ITAT Delhi

Arintex Global Limited Vs ITO (ITAT Delhi) Outstanding trading liabilities cannot be treated as deemed income under section 41(1) unless the assessee has actually obtained a benefit by way of remission or cessation of liability. Further, non-compliance with notices under sections 131/133(6), by itself, cannot justify treating sundry creditors as bogus where the assessee has furnished supporting evidence and the liabilities continue to subsist. The content is a Legal Case/Judgment/Tribunal Order. The ITAT Delhi held that outstanding foreign trade liabilities could not be taxed under section 41(...