Section 80-IA Deduction Denied as Trade Credits Remained Unexplained Under Section 68

Advertisement AKR Poly Industries Vs ITO (Madras High Court) The assessee, a partnership firm engaged in the manufacture of disposable plastic cups and registered as a small-scale undertaking in Pondicherry, filed its return declaring nil income and claimed deduction of Rs. 9,10,600 under Section 80-IA of the Income-tax Act. During scrutiny assessment, the Assessing Officer (AO) accepted that the assessee satisfied the conditions for claiming deduction under Section 80-IA(4). However, the AO noticed that the balance sheet reflected sundry creditors amounting to Rs. 30,17,891.78. The assesse...