Audit Fee Allowable Only When Liability Crystallizes, Not on Estimates or Historical Basis

UP Rajya Nirman Sahkari Sangh Ltd Vs DCIT (ITAT Lucknow)

In UP Rajya Nirman Sahkari Sangh Ltd vs DCIT, the Lucknow Bench of the Income Tax Appellate Tribunal (ITAT) dealt with the disallowance of audit fee provisions and delayed EPF contributions for Assessment Year 2013–14. The assessee, a registered co-operative society, had its audit fee provision of ₹40,00,000 disallowed by the Assessing Officer, citing that the liability had not crystallized during the relevant year. The CIT(A), NFAC upheld the disallowance, asserting that the assessee did not provide sufficient e

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