Transfer of reserve created out of tax paid profit is not mistake rectifiable under section 154

Advertisement Sarda Gums & Chemicals F-54 Vs ACIT (ITAT Jodhpur) ITAT Jodhpur held that merely by transferring the reserve created out of the tax paid profit subsequently transferred to capital account of the firm is not a mistake apparent on record and cannot be rectified under the guise of provision of section 154 of the Act Facts- The assessee is a Firm. The assessee derives income from manufacturing and trading of Gwar Gum Powder Cassia Tore, Psyllium Husk, and Tamarind Powder. The case was selected for scrutiny through CASS. AO disallowed Rs. 4,73,780/- i.e. 1/10th of the various ...