No addition can be made for trade creditors u/s 68

Addition u/s 68 with regard to trade creditors i.e., the creditors from whom purchases have been made in regular course of business.
It has been held in the following cases that no addition can be made in the case of persons from whom purchases have been made in the regular course of business:-
• CIT vs. Pancham Dass Jain 205 CTR 444 (All)
• Annamaria Travels & Tours (P) Ltd. 95 TTJ 71 (Del)
• CIT vs. M.K. Brothers 163 ITR 249 (Guj.)

Addition u/s 68 for unexplained creditors not sustainable where trading results are accepted

M/S. Divine International Delhi ITAT ITA 1493/2011 dated 30-9-2011.