ITAT affirmed deletion of an addition made under s.143(1) where...

ITAT affirmed deletion of an addition made under s.143(1) where contingent liabilities disclosed in Form 3CD were not debited to profit & loss; the Tribunal held the auditor's disclosure under clause 21(g) is informational and does not convert a balance-sheet contingent liability into deductible expenditure. Revenue produced no evidence that the amounts were charged to P&L or claimed in computation of income, and an adjustment at the CPC stage cannot extend beyond apparent arithmetical mistakes to matters requiring verification. Consequently, the impugned adjustment was held without foundation and unsustainable, and the addition was quashed in favour of the assessee.

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