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2022 (9) TMI 32 - ITAT BANGALORERectification u/s 154 - Addition u/s 68 - contention of the assessee that increase in cash in hand was to correct the accounting error committed by the assessee’s Accountant and the said sum was already included in the addition made u/s 68 - HELD THAT:- Upon verification, the assessee noticed that this amount was paid by Motcab Finance Pvt. Ltd. to the assessee on 14.09.2015, which inadvertently was considered by the assessee’s Accountant as cash in hand deposited into assessee’s account, resulting in a decrease in cash balance (Therefore it was submitted that amounts received from Motcab Finance Private Limited was Rs.3.88 crore during the year and not Rs.3.58 crore). Immediately thereafter, revised return was filed on 03.11.2017 with updated schedules. Accordingly, as per the revised return, the AO had completed the assessment by making the total addition of Rs.3.88 crore (3.58 crore + 30 lakh). The original return and the revised return filed by the assessee are placed on record. In the original return, the loans and advances outstanding was disclosed at Rs.9,70,90,675 and the same was increased by Rs.30 lakh in the revised return to Rs.10,00,90,675 - Further, the cash in hand as per original return was at Rs.3,48,71,938 and the same was increased by Rs.30 lakh to a sum of Rs.3,78,71,938 - AO and the CIT(A) had considered the addition of Rs.30 lakh on a standalone basis without reference to the corrections made in the revised return. (increase in cash in hand and loans & advances). The addition of Rs.30 lakh is made in a rectification order passed u/s 154 - There is no mistake apparent and facts on record only discloses an error in accounting entry by the Accountant, which does not warrant a rectification u/s 154 - Further, this amount of Rs.30 lakh is prima facie already included in Rs.3.88 crore while the A.O. making the addition u/s 68 of the I.T.Act. For the aforesaid reasons, we quash the rectification order passed u/s 154 - Assessee appeal allowed.
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