https://www.taxtmi.com/caselaws?id=446774 The ITAT Delhi dismissed the Revenue's appeal regarding unexplained sundry creditors. The AO added amounts to the assessee's income after creditors failed to respond to notices issued under section 133(6) through the ITBA Portal. The ITAT held that absence of replies from creditors does not automatically make them bogus without evidence. The AO failed to issue show cause notices before making additions and did not confront the assessee about non-receipt of replies. Applying section 41(1) provisions and citing precedents including Vardhman Overseas Ltd and T.V. Sundaram Iyengar Sons Ltd, the ITAT upheld the CIT(A)'s order declining to treat the creditors as cessation of liability. en-us Fri, 08 Dec 2023 00:00:00 +0530 Mon, 11 Dec 2023 08:59:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446774 The ITAT Delhi dismissed the Revenue's appeal regarding unexplained sundry creditors. The AO added amounts to the assessee's income after creditors failed to respond to notices issued under section 133(6) through the ITBA Portal. The ITAT held that absence of replies from creditors does not automatically make them bogus without evidence. The AO failed to issue show cause notices before making additions and did not confront the assessee about non-receipt of replies. Applying section 41(1) provisions and citing precedents including Vardhman Overseas Ltd and T.V. Sundaram Iyengar Sons Ltd, the ITAT upheld the CIT(A)'s order declining to treat the creditors as cessation of liability. Case-Laws Income Tax Fri, 08 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446774