https://www.taxtmi.com/caselaws?id=404599 ITAT Chennai reversed the AO and CIT(A)'s additions under sections 41(1) and 68 relating to sundry creditors and other credits in the appellant's books. The tribunal held that the liabilities were not trade liabilities for which deductions were claimed earlier, but advances or loans carried forward from prior years. The appellant provided sufficient evidence to establish the nature, source, and genuineness of these credits, including those arising from family partition and land advances. Since these credits were neither unexplained nor received in the impugned assessment years, they could not be taxed under sections 41(1) or 68. Consequently, the additions were deleted and the appeal was allowed in favor of the appellant. en-us Tue, 23 Feb 2021 00:00:00 +0530 Tue, 29 Jul 2025 15:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404599 ITAT Chennai reversed the AO and CIT(A)'s additions under sections 41(1) and 68 relating to sundry creditors and other credits in the appellant's books. The tribunal held that the liabilities were not trade liabilities for which deductions were claimed earlier, but advances or loans carried forward from prior years. The appellant provided sufficient evidence to establish the nature, source, and genuineness of these credits, including those arising from family partition and land advances. Since these credits were neither unexplained nor received in the impugned assessment years, they could not be taxed under sections 41(1) or 68. Consequently, the additions were deleted and the appeal was allowed in favor of the appellant. Case-Laws Income Tax Tue, 23 Feb 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404599