addition to income

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v (Querist)
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03 September 2009 Whether AO is justified in adding diference in sundery creditors to the income, where there is a difference in the opening balance and whether AO is justified in opening previous year case u/s 148.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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03 September 2009 YES

SECTION 68
Where any sum is found credited in the books74 of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the 75[Assessing] Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year.