https://www.taxtmi.com/caselaws?id=472134 Contingent liabilities disclosed in an audit report cannot be adjusted during return processing where the amount was neither debited to the profit and loss account nor claimed in computing total income. The adjustment mechanism for audit-report expenditure not considered in total income applies only where an expenditure exists; a performance guarantee disclosed solely as a contingent liability does not meet that condition. Verification of the return, audit report and computation already on record does not involve admission of additional evidence, so the procedure governing additional evidence is not engaged. The processing adjustment is therefore unsustainable and its deletion remains effective. en-us Thu, 17 Apr 2025 00:00:00 +0530 Wed, 30 Sep 2026 13:47:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472134 Contingent liabilities disclosed in an audit report cannot be adjusted during return processing where the amount was neither debited to the profit and loss account nor claimed in computing total income. The adjustment mechanism for audit-report expenditure not considered in total income applies only where an expenditure exists; a performance guarantee disclosed solely as a contingent liability does not meet that condition. Verification of the return, audit report and computation already on record does not involve admission of additional evidence, so the procedure governing additional evidence is not engaged. The processing adjustment is therefore unsustainable and its deletion remains effective. Case-Laws Income Tax Thu, 17 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472134