DCIT Vs Kopran Ltd. (ITAT Mumbai)
ITAT Mumbai held that demand is invalid since raised on account of typographical error with no malafide intention as assessee shouldn’t be burdened with unnecessary hardship in case there is any inadvertent error which are not malafide.
Facts-
The present appeal has been preferred by the revenue. The revenue is in appeal challenging the deletion on addition made on account of increase in profit or decrease in loss of ICDS adjustment and deviation in method of valuation of stock amounting to Rs. 34,56,43,410/- and decrease in profit or increase in loss of ICDS adjustments and deviation in method of valuation of stock amounting to Rs. 11,77,61,410/- which were deleted by CIT(A) on the ground that the disallowance made by the CPC was due to the typographical error made in reporting the figure of increase in purchase on account of inclusion of GST.
Conclusion-
Held that a tax audit report could be amended strictly only as per the method recommended in Statement on Auditing Standards – SA-560 on ‘Subsequent Events’, there is no bar on the Tribunal to decide on an issue based on the revised tax audit report especially in cases where there has been inadvertent error crept in in the original tax audit report. Even otherwise, there has to be a recourse to the assessee in case of any inadvertent error which are not malafide, where the assessee should not be put to unnecessary hardships due to mere technicalities. We therefore deem it fit to uphold the order of ld. CIT(A) on this issue where it has been held that the same is a typographical error with no malafide intention, thereby directing the ld. AO to delete the impugned adjustment after duly verifying that the said adjustment is merely due to the typographical error in the figures in the original tax audit report. On the above observation, the grounds of appeal filed by the revenue holds no merit and is hereby dismissed.
