https://www.taxtmi.com/caselaws?id=463088 The ITAT upheld the deletion of additions made under section 43B for sales and service tax, noting that the assessee's income was estimated by applying a net profit rate on turnover, rejecting only P&L items, not balance sheet items like unsecured loans or investments. The matter was remanded to the AO to verify claims regarding VAT/service tax liabilities paid during the year and to allow deductions for such liabilities paid in subsequent years. Regarding unexplained cash credits, the CIT(A) deletion was affirmed as the identity, creditworthiness, and genuineness of secured and unsecured loans from financial institutions and related parties were established. The AO's objection based on creditors' low declared income was found insufficient to sustain additions. The appeal was allowed in part for statistical purposes and dismissed against the revenue on unexplained cash credits. en-us Mon, 23 Sep 2024 00:00:00 +0530 Tue, 05 Aug 2025 20:49:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463088 The ITAT upheld the deletion of additions made under section 43B for sales and service tax, noting that the assessee's income was estimated by applying a net profit rate on turnover, rejecting only P&L items, not balance sheet items like unsecured loans or investments. The matter was remanded to the AO to verify claims regarding VAT/service tax liabilities paid during the year and to allow deductions for such liabilities paid in subsequent years. Regarding unexplained cash credits, the CIT(A) deletion was affirmed as the identity, creditworthiness, and genuineness of secured and unsecured loans from financial institutions and related parties were established. The AO's objection based on creditors' low declared income was found insufficient to sustain additions. The appeal was allowed in part for statistical purposes and dismissed against the revenue on unexplained cash credits. Case-Laws Income Tax Mon, 23 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463088