Ramya Tumkur Guruchannabasappa Vs ITO (ITAT Bangalore)
Bangalore ITAT Deletes ₹10 Lakh Addition Caused by DRP’s Typographical Error- AO Cannot Sustain Addition Contrary to DRP’s Intent
The Bangalore ITAT held that the Assessing Officer wrongly retained an addition of ₹10 lakh due to a typographical error in the Dispute Resolution Panel’s (DRP) directions. The draft assessment order had made additions aggregating to ₹3,38,25,770 under section 69. Although the DRP intended to direct deletion of the entire addition, its order mistakenly mentioned ₹3,28,25,770 instead of ₹3,38,25,770. Treating the difference of ₹10 lakh as a surviving addition, the Assessing Officer retained that amount in the final assessment order.
The Tribunal observed that, on a reading of the draft assessment order and the DRP’s findings as a whole, it was evident that the DRP had intended to delete both additions relating to the time deposits and reportable transactions. The incorrect figure mentioned in the DRP’s directions was merely a clerical/typographical error and could not be used to sustain an otherwise non-existent addition. Accordingly, the ITAT directed the Assessing Officer to delete the ₹10 lakh addition, holding that no part of the original addition survived after the DRP’s directions. The appeal was partly allowed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
