Contingent Liabilities Not Debited to P&L Account Can’t Be Added Solely on Audit Report Disclosure

ACIT Vs Mahesh Mohanbhai Patel (HUF) (ITAT Ahmedabad) Ahmedabad, May 8, 2025 – The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has dismissed an appeal filed by the Assistant Commissioner of Income Tax (ACIT) against Mahesh Mohanbhai Patel (HUF), upholding the decision of the Commissioner of Income Tax (Appeals) [CIT(A)] to delete two significant additions made by the Centralised Processing Centre (CPC), Bengaluru. The Tribunal’s ruling, pronounced on May 8, 2025, reaffirmed that adjustments under Section 143(1)(a) of the Income-tax Act, 1961, must be limited to apparent erro...