2020 (11) TMI 701

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....eting the disallowance of provision for unreconciled OD and CC loan of Rs. 1,91,32,790/-. 2. The appellant craves to alter, amend or add any other ground that may be considered necessary in course of the appeal proceeding. 2. Brief facts of the case are that the aassessee is involved in the business of trading and distribution of fertilizer, paddy, rice, and rental business. The case was selected for scrutiny and statutory notices were issued to the assessee. During the course of assessment proceedings, it was noticed by the AO that the statutory audit of accounts of the assessee is not yet over, therefore, he rejected the books of accounts u/s.145(3) of the Act after communicating to the authorized representative of the assesse....

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.... justified to delete the additions made by the AO because the provisions are not allowed as per the Income Tax Act. It was debited in the final account submitted by the assessee in the profit and loss account. In the final account submitted by the assessee before the CIT(A), this amount has been debited under the head provision for unreconciled OD and CC loan, which has been ignored by the CIT(A). Therefore, ld. CIT-DR submitted that the order of AO deserves to be restored. 6. On the other hand, ld. AR of the assessee relied on the order of CIT(A) and submitted that the CIT(A) was fully justified to delete the addition made by the AO after considering the profit and loss account, balance sheet and final profit and loss account and the ba....