Section 41(1) addition merely based upon conjectures & surmises was not sustainable

ITO Vs N.G. Group (ITAT Mumbai)

ITAT observed that that AO has invoked the provision of section 41(1) without bringing on record any cogent material. For how long the account is outstanding and on what basis of his enquiry, AO has come to the conclusion that these accounts are not payable. Devoid of these details, the assessment is simply based upon conjecture & surmise not sustainable in law.

When sales are not doubted, 100% disallowa

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