https://www.taxtmi.com/caselaws?id=789901 Ad hoc additions to purchases, expenses and current liabilities were unsustainable where the books of account were not rejected under section 145(3) of the Income-tax Act, 1961. The tribunal noted that the liabilities included opening balances, creditors arising from purchases already subjected to addition, and other business or statutory dues, so the same amounts could not be taxed again on a presumptive basis. As the assessment made percentage-based additions without first displacing the books, and the liabilities had already been reflected in the accounts, the additions lacked a lawful foundation. The additions relating to current liabilities and creditors were therefore deleted. en-us Wed, 08 Apr 2026 00:00:00 +0530 Thu, 16 Apr 2026 08:34:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789901 Ad hoc additions to purchases, expenses and current liabilities were unsustainable where the books of account were not rejected under section 145(3) of the Income-tax Act, 1961. The tribunal noted that the liabilities included opening balances, creditors arising from purchases already subjected to addition, and other business or statutory dues, so the same amounts could not be taxed again on a presumptive basis. As the assessment made percentage-based additions without first displacing the books, and the liabilities had already been reflected in the accounts, the additions lacked a lawful foundation. The additions relating to current liabilities and creditors were therefore deleted. Case-Laws Income Tax Wed, 08 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789901