Sh. Vikas Aggarwal Vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Sh. Vikas Aggarwal, is engaged in the business of resale of automobiles and tractor parts under the name Tekno Auto Parts. For the assessment year 2017-18, the assessee filed his return of income on 01.11.2017, declaring income of Rs.10,19,850/-. The Assessing Officer noticed that the assessee had shown sundry creditors of Rs.1,71,50,939/- in its books of account. Upon verification, the Assessing Officer found that no confirmation was received from four sundry creditors, leading to the disallowance of 20% of the total sundry creditors, resulting in an addition of Rs. 34,30,187/- under section 68 of the Income-tax Act, 1961. The assessee contested this addition before the first appellate authority, which restricted the addition to 10%, sustaining an addition of Rs. 17,15,093/-.…

Legal Issues

• 1. Whether the addition made by the Assessing Officer under section 68 of the Income-tax Act, 1961 is justified?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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