Tax Audit Report Error Cannot Trigger Disallowance – ITAT Deletes Section 40(a)(ia) Addition Based on Copied Audit Figures

Shivani Enterprises Vs ITO (ITAT Pune) Tax Audit Report Error Cannot Trigger Disallowance – ITAT Deletes Section 40(a)(ia) Addition Based on Copied Audit Figures The Pune ITAT deleted a disallowance of ₹12.66 lakh under section 40(a)(ia) after finding that the addition arose solely due to an inadvertent error in the tax audit report, where figures relating to a sister concern had been wrongly replicated in the assessee’s audit report. The assessee, a partnership firm engaged in fabric trading, was subjected to limited scrutiny. Based on remarks in the tax audit report, the Assessing ...