2022 (4) TMI 536

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...., Accountant Member : This appeal by the assessee is arising out of the order passed by the Commissioner of Income-tax (Appeals), [in short, the ld. CIT(A)]-3, Kolkata in Appeal No.168/CIT(A)-3/W-9(1)/Kol/15-16 dated 29-01-2019 against the assessment order passed by the Assessing Officer [( in short, the ld.AO), I.T.O., Ward-9(4), Kolkata] u/s. 143(3) of the Income-tax Act, 1961 ( hereinafter ref....

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....question was nothing but a contingent liability based on Auditors' observations given in Form 3CD. Accordingly, he disallowed the claim as not deductible and added back the same to the total income of the assessee. Aggrieved, the assessee went into appeal before the ld. CIT(A). Before him the assessee had made its submissions. The ld. CIT(A) considering the same confirmed the impugned addition as ....

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....contended that contingent liability of Rs. 670929/- was not debited to the P & L account by the assessee. The auditor has wrongly stated in its audit report vide clause 17(a)(3) of the TAR(Tax Audit Report) that the assessee company has debited an amount of Rs. 6,70,929/- during the financial year (FY) ended on 31-03-2012 as contingent liability. The assessee further submitted that the AO is duty ....

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....various electricity companies. 7. Considering the facts and material on record and perusing the audited financial statements, we find that the AO and the ld. CIT(A) both have proceeded with wrong observations of the tax auditor given in the TAR (Tax Audit Report), which when corroborated with the claim made in the audited financial statement deserves to be deleted. The correct position on the cla....