Sundry Creditors Cannot Be Taxed Once Purchases Accepted: ITAT Delhi Deletes Addition

Sunil Bansal Vs ITO (ITAT Delhi) Once Sales & Purchases Accepted, Creditor Balance Can’t Be Taxed- ITAT Delhi Deletes ₹1.03 Cr Sundry Creditor Addition: Assessee, proprietor of Bansal Sales Corporation engaged in wholesale trading of iron & steel, filed return declaring income of ₹8.67 lakh. During scrutiny, AO noticed sundry creditors of ₹8.82 crore. Notices issued u/s 133(6) to major creditors – JBG Trading Co., S.S. Trading Co. & Shree Ram Traders – were either returned unserved or not complied with. Inspector deputed by AO also failed to trace them. AO held that gen...