Trade Creditors Are NOT Cash Credits- Mumbai ITAT Deletes ₹16.44 Crore Addition U/s 68

ITO Vs NCCCL Kinjal Ktil Consortium (ITAT Mumbai) The Mumbai ITAT held that outstanding trade liabilities arising from genuine business transactions cannot be treated as unexplained cash credits under Section 68, especially when the corresponding purchases, services and payments through banking channels are accepted by the Department. The Tribunal accordingly upheld deletion of addition of ₹16.44 crore made against a consortium executing large infrastructure projects for a Government corporation. The assessee consortium, formed by reputed infrastructure companies including NCCCL and KTIL, ha...