Blaze Manufacturing Co vs DCIT
Parties Involved
Facts Summary
The assessee, Blaze Manufacturing Co, engaged in the business of export of Indian handicrafts, filed its return of income declaring a total income of INR 92,29,680/-. The assessment was completed with a total income of INR 93,74,390/- by making disallowance out of various expenses claimed. The PCIT directed the AO to make a fresh assessment after making inquiries with respect to sundry creditors declared by the assessee. The AO made additions of INR 5,00,70,049/- by doubting 29.24% of the total creditors of INR 17,12,38,198/-. The CIT(A) confirmed the AO's order, which was challenged by the assessee before the Tribunal.…
Decision in favour of
Assessee
Legal Issues
- 1. Addition of INR 5,00,70,049/- made by AO on account of cessation of liability.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
6 precedents cited in this judgement.
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