Case Law Analysis
|Income Tax Appellate Tribunal
Section 68 IT Act | Trade Payables Cannot Be Treated as Unexplained Credit Without Creditor Verification & Cross-Examination : ITAT Ahmedabad
ITAT Ahmedabad rules that trade payables cannot be added as unexplained income under Section 68 of the IT Act without independent verification of creditor genuineness, including cross-examination rights. The ruling reinforces natural justice principles, mandating AO scrutiny of documentary evidence before invoking tax liability on trade creditors.