Income Tax Tribunal Upholds Taxpayer's Position on Contingent Liability, Rejects Revenue's Appeal for Disallowance

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....ITAT dismissed Revenue's appeal, finding no merit in challenging the CIT(A)'s findings. The tribunal confirmed that the assessee had already added back the disputed amount while computing total income, rendering subsequent disallowance improper. The contingent liability was appropriately disclosed in financial statements without impacting profit and loss account. The tax auditor's inadvertent error in reporting was noted, but did not alter the fundamental tax treatment. The tribunal emphasized that the assessee did not claim the contingent liability as an expense, and the departmental records substantiated this position. Consequently, the grounds raised by Revenue were comprehensively rejected.....