https://www.taxtmi.com/caselaws?id=787217 Addition of Rs. 5,60,00,000 treated as unexplained trade payables was deleted because the assessing officer relied solely on a comparative ratio method without identifying specific creditors, conducting age wise verification, or producing independent evidence that recorded liabilities were fictitious; confirmations and particulars on record were not rebutted and abnormal COVID 19 business conditions explained payment delays, and the piece concludes that estimation by ratio alone cannot replace examination of individual entries or proof that liabilities have ceased to exist, so the addition was rejected. en-us Fri, 20 Feb 2026 00:00:00 +0530 Sat, 28 Feb 2026 08:41:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787217 Addition of Rs. 5,60,00,000 treated as unexplained trade payables was deleted because the assessing officer relied solely on a comparative ratio method without identifying specific creditors, conducting age wise verification, or producing independent evidence that recorded liabilities were fictitious; confirmations and particulars on record were not rebutted and abnormal COVID 19 business conditions explained payment delays, and the piece concludes that estimation by ratio alone cannot replace examination of individual entries or proof that liabilities have ceased to exist, so the addition was rejected. Case-Laws Income Tax Fri, 20 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787217