SPS Automobile Vs ITO (ITAT Allahabad)
Addition on account of inadvertent error in reporting by tax auditor needs re-verification: ITAT Allahabad
ITAT Allahabad held that on account of inadvertent error in reporting by the tax auditor in form 3 CD this addition has been made while framing the assessment order u/s 143(1) by CPC, Bangalore, which is system oriented. Thus, matter remanded back to the file of AO.
Facts- The assessee is a partnership firm engaged in the business of automobile dealership (purchase and sale of tractors). Regular return has been filed along with uploaded copies of audited accounts and tax audit report, disclosing a total income of Rs. 3,54,460/- , complete in all respects , and the said return has been assessed by CPC, u/s 143(1) on a total income of Rs. 57,72,460/-.
Conclusion- Held that on account of inadvertent error in reporting by the tax auditor in form 3 CD this addition has been made while framing the assessment order u/s 143(1) by CPC, Bangalore, which is system oriented. Moreover, when this error has already come to light, it was incumbent on the part of the assessee and his auditor, to have revised the TAR, by filing a revised report, at a subsequent date, which has also not been done in the instant case. Technically, this matter should go back to the first appellate authority to take a decision on merits of the case, but considering the technical defects existing in the TAR itself, we are of the opinion that the matter needs verification by the assessing officer at the ground level with respect to the audited accounts uploaded for the year under appeal , in consultation with the figures contained in the return in ITR – 5, supported by books of accounts vis a vis the contents of the TAR existing in the portal, and all these enquiry and verification can only be done by the AO.
