Section 68 addition cannot be made for duly explained credits

ITO Vs Sh. Sunil Nayyar (ITAT Delhi) In the instant case, the AO has not pointed out any accounting defects in the books of accounts. Rather he is summarily ignored the books of accounts but has proceeded to invoke section 145(3) which is bad in law.” 14. The ld. CIT (A) held that there is no doubt about the fact that the assessee was dealing in milk on whole sale basis. All the trade creditors were shown outstanding as on 31.03.2012 but paid in the beginning of the subsequent year. There was no accumulation of fund either in the shape of unsecured loan or sundry creditors. The entire sa...