Concord Fortune Minerals India Pvt. Ltd. Vs ACIT (ITAT Kolkata)
Wrong Audit Report Entry Corrected – Disallowance Made u/s 143(1) Deleted
The Kolkata ITAT allowed the assessee’s appeal and deleted the addition of ₹40.95 lakh made under Section 143(1) on the basis of a mistaken entry in the Tax Audit Report. The Tribunal noted that the auditor had wrongly reported club expenditure of ₹41,42,088 instead of the correct figure of ₹41,421 in clause 21(a) of the audit report. This clerical error was subsequently rectified by filing a revised tax audit report. The Tribunal held that the CIT(A) erred in sustaining the disallowance merely on the basis of the original audit report without appreciating the corrected factual position. Since the addition arose purely from an apparent reporting mistake and not from any real disallowable expenditure, the order of the CIT(A) was set aside and the Assessing Officer was directed to delete the entire addition.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 27.05.2025 for the AY 2017-18.
2. The only issue raised by the assessee in various grounds of appeal is against the order of ld. CIT (A) confirming the addition of ₹40,95,670/-as made by the ld. AO, CPC u/s 143(1) of the Income-tax Act, 1961 (the Act) dated, 06.03.2019.
