No section 68 Addition if Asessee proves Genuineness & Creditworthiness of Creditors

Prayag Polytech Pvt. Ltd. Vs Addl. CIT. (ITAT Delhi)

The issue under consideration is whether the addition on account of advances from customers treating the same as unexplained liability is justified in law?

In the present case, the AO made the addition u/s 68 stating that the assessee could not prove the transaction u/s 68 and hence, in absence of identity, genuineness and credit worthiness of the customers who have given advances, this addition was rightly done.

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