Form 3CD Errors Not Enough: Tribunal Flags Wrong Business Income Additions

Bhawarlaldarla Harish Kumar Vs DCIT (ITAT Bangalore) Misreporting in Audit Report ≠ Real Income: LTCG Issue Restored for Verification 3CD Error Causes Assessee filed return declaring ₹9,51,840, including rent of ₹6,96,846 under “house property”. Inadvertently, the figures of unrealized gain based on market value as on 31st March were filed in the form 3CD.  CPC, relying on Form 3CD disclosures in column 16(d), treated this rent again as business income & also treated ₹2,95,131 shown as “profit on sale of shares” in 3CD as LTCG/business income, even though no shares were tr...