https://www.taxtmi.com/caselaws?id=781265 ITAT held for the assessee that additions treating disclosed contingent liabilities as expenses were unsustainable. The Tribunal found the tax audit Form 3CD disclosure under clause 21(g) is informational; contingent liabilities shown in the balance sheet but not debited to profit & loss or claimed in income computation cannot be converted into expenditures merely by disclosure. The CPC's adjustment under section 143(1) was held to lack foundation because no material showed the amounts were charged to P&L, and such verifications exceed the scope of s.143(1). The addition was deleted. en-us Thu, 09 Oct 2025 00:00:00 +0530 Thu, 13 Nov 2025 08:14:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=781265 ITAT held for the assessee that additions treating disclosed contingent liabilities as expenses were unsustainable. The Tribunal found the tax audit Form 3CD disclosure under clause 21(g) is informational; contingent liabilities shown in the balance sheet but not debited to profit & loss or claimed in income computation cannot be converted into expenditures merely by disclosure. The CPC's adjustment under section 143(1) was held to lack foundation because no material showed the amounts were charged to P&L, and such verifications exceed the scope of s.143(1). The addition was deleted. Case-Laws Income Tax Thu, 09 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=781265