Tag: tax audit report

Addition made by CPC as per Clause 16(b) of Tax Audit Report deleted as it was not stated in the report that it was income of the assessee In a recent judgment, ITAT Delhi has deleted addition made by CPC on the basis of disclosure in Clause 16(b) …

Contingent liabilities not debited to profit and loss account cannot be added merely on the basis of disclosure in the tax audit report – ITAT  In a recent judgment, ITAT Ahmedabad deleted adjustment made by CPC u/s 143(1)(a) holding that contingent liabilities which are not debited to the …

Penalty u/s 271B can not be levied in a case where tax audit report was furnished before completion of the assessment In a recent judgment, ITAT Cochin has held that penalty u/s 271B can not be levied for non furnishing of tax audit report within due date as …

CBDT amends Form 3CD of Tax Audit Report w.e.f. Assessment Year 2025-26. CBDT has revised Form 3CD of Tax Audit Report for AY 2025-26 by notifying the Income-tax (Eighth Amendment) Rules, 2025 vide Notification No. 23/2025 dated 28.03.2025 effective from 1st day of April, 2025. The summary of …

Case remitted for verification of wrong figure on account of adjustment for ICDS as reported by Tax Auditor. In a recent judgment, the ITAT Chennai remitted the matter for verification where CPC made adjustment u/s 143(1) of the Income Tax Act, 1961 (the Act) due to wrong figure …

Penalty u/s 271B confirmed for lack of proof that Books of accounts were destroyed by termite In a recent judgment, the ITAT Visakhapatnam has confirmed penalty u/s 271B holding that assessee was not able to submit any evidences to show that books of accounts were destroyed by white …

TCS Payable not hit by section 43B as it can not be debited in Profit and Loss account and claimed as deduction – ITAT In a recent judgment, the ITAT Amritsar has held that TCS Payable is not hit by the provisions of section 43B of the Income …

AO refused to accept Tax Audit Report as schedule were not signed by CA. High Court remanded the matter  In a recent judgment, the Hon’ble High Court of Karnataka remanded the matter to Assessing Officer (AO) for fresh consideration where he refused to accept Tax Audit Report of …

ITAT set aside Penalty u/s 271B as Tax Audit Report was not filed due to strained relationship with CA In a recent judgment, ITAT Nagpur has set aside Penalty u/s 271B as the assessee could not file Tax Audit Report due to strained relationship with Chartered Accountant. ABCAUS …

Tax Audit provisions do not apply to items of other income shown in Profit & Loss Account when business turnover is Nil – ITAT ABCAUS Case Law Citation:ABCAUS 3761 (2023) (06) ITAT Important Case Laws relied upon:Bajrang Oil Mills vs. ITO, 295 ITR 314Ghai Construction vs.  State of …