Additions Based Solely on Tax Audit Report Set Aside for Fresh Verification

AVG Logistics Limited Vs ADIT (ITAT Delhi) Audit Report Disclosure ≠ Taxable Income: ITAT Delhi Sends 143(1) Additions Back for Fresh Verification Delhi ITAT held that mere disclosures in Tax Audit Report (Form 3CD) cannot automatically result in additions while processing return u/s 143(1). The Tribunal noted that the CPC had added ₹1.37 crore towards contingent liabilities solely based on Clause 21(g) of the tax audit report, despite the fact that such liabilities were not debited to the P&L account and were disclosed only in the notes to accounts as required by AS-29. The ITAT furt...