Section 68 of income tax act

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Nagarajan (Querist)
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03 December 2011 Respected sir,
whether the provisions of section 68 of I-T Act would apply in relation to creditors whose details not available with certain.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 December 2011 Generally in case of creditors, if these are related with Purchases or Expenses, of the relevant year expenditure is disallowed.
In case, where the amount is not supported by such expenditure items it can be treated as Cash Credit and provisions of Section 68 can be applied.

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