Ankur Bansal Vs DCIT (ITAT Raipur)
Assessee is engaged in the business of transportation in the name of M/s Tanvi Roadways. He filed his return at Rs. 97,46,160/-, which has been assessed u/s 143(3) r.w.s. 144B at Rs. 2,68,80,894/-. Income was enhanced on account of increase in capital balance treating it to be unexplained cash credit u/s 68 for Rs. 1,61,29,215/-. Another addition was on account of long-term capital gain on sale of property at Rs. 10,05,519/-. Appeal filed by the assessee was dismissed.
It is submitted on behalf of assessee that he is engaged in the business of transportation and logistics services and such business is being conducted by the assessee in his personal capacity as well as in capacity of the Proprietor of “M/s Tanvi Roadways”. He maintained two books of account for personal and proprietary concern. As assessee has two final sets of accounts out of which account of proprietary concern was audited while his personal account remained unaudited. While preparing the consolidated balance sheet, mistakenly, amount of personal capital account was added to the proprietary concern capital account which was filled as proprietor’s capital in the ITR was Rs. 8,33,69,556/-, whereas the total proprietor’s capital was to be reflected at Rs. 6,72,40,340/-. Similar mistake was affected on the asset side of the consolidated balance sheet also. Under the recognized accounting principles while consolidating the balance sheets of a single assessee having different branches of operations, the figures commonly representing certain assets and liabilities are to be eliminated on both the sides. A clerical mistake occurred while consolidating the annual accounts by the assessee thus the amounts representing asset in one balance sheet and liability in the other balance sheet are doubled. Assessee furnished synopsis showing balance sheets as on 31.03.2019 and 31.03.2020 along with copies of ITR-3 for AY 2018-19, 2019-20 & AY 2020-21 and other relevant details. Finally, it was argued that no addition on account of a clerical mistake having no impact on the taxable income of the assessee has to be made. On the other hand, revenue supported the orders of lower authorities.
