https://www.taxtmi.com/caselaws?id=767610 ITAT Lucknow dismissed department's appeal regarding addition under section 68 for unconfirmed sundry creditors. The tribunal held that credit balances representing purchase creditors cannot be treated as bogus merely because payments remained outstanding, unless purchases themselves are proven fictitious. Since AO failed to establish bogus nature of purchases and VAT authorities confirmed sales/purchases, the 8% net profit estimation was deleted. Matter regarding balance differences was remanded to AO for reconciliation opportunity. en-us Wed, 19 Mar 2025 00:00:00 +0530 Fri, 21 Mar 2025 08:25:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767610 ITAT Lucknow dismissed department's appeal regarding addition under section 68 for unconfirmed sundry creditors. The tribunal held that credit balances representing purchase creditors cannot be treated as bogus merely because payments remained outstanding, unless purchases themselves are proven fictitious. Since AO failed to establish bogus nature of purchases and VAT authorities confirmed sales/purchases, the 8% net profit estimation was deleted. Matter regarding balance differences was remanded to AO for reconciliation opportunity. Case-Laws Income Tax Wed, 19 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767610