Forget password
New User/ Regiser
Register for Demo / Trial
Annual Subscription Offer
With popular demand, we introduce:-
Special offer on GST Package for Professionals
i.e. CA/CWA/CS/Advocate/Others @ 2500/- +GST
2020 (11) TMI 701 - ITAT CUTTACK - Income Tax
Head Note / Extract:
Disallowance of provision for unreconciled OD and CC loan - AO has made addition on the basis of provisional profit and loss account and the balance sheet - CIT-A deleted the addition - HELD THAT:- On perusal of the financial statement no where it is appearing in the profit and loss account. Therefore, the AO was not justified to make addition on this account and the CIT(A) has rightly deleted the addition made by the AO. Provisions debited into profit and loss account without creating any liability is not allowable under the Income Tax Act but in the financial statements produced before us, we also do not find anywhere that the particular amount has been debited into the profit and loss account. The findings recorded by the CIT(A) in this regard are justified. Accordingly, we uphold the order of the CIT(A) with regard to deletion of addition made by the AO under the head provision for unreconciled OD and CC loan and dismiss the appeal of the Revenue.