ITAT Mumbai deletes Addition of Contingent Liability of ₹4,10,88,888

ACIT Vs Fitrite Packers (ITAT Mumbai) In the case of ACIT Vs Fitrite Packers, the Income Tax Appellate Tribunal (ITAT) Mumbai dismissed the Revenue’s appeal, affirming the decision of the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeal arose from adjustments made by the Central Processing Centre (CPC) during the processing of Fitrite Packers’ return for the assessment year 2020-21. The CPC disallowed two amounts: a penalty of ₹1,000 and a contingent liability of ₹4,10,88,888. The assessee, a partnership firm engaged in manufacturing packaging materials, appealed successfu...