Disallowance based on Audit Report can be made only after asking assessee to explain the same

Shri Subhash Bose Vs. DCIT (ITAT Kolkata) The main grievance of the assessee was that before making the dis allowance the assessee was never given an opportunity to explain the discrepancy which was made in the auditor’s report. According to the ld. Counsel, sec. 43B of the Act is attracted only when the amount in question are debited to the P&L Account for the relevant assessment year but not paid within the specified date. According to him, in this case the fact is that the concerned liability of Rs. 1,78,334/- was not out of the current year’s VAT expenses of Rs. 9,83,648/- but brou...