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2022 (4) TMI 484 - AT - Income TaxUnexplained cash credit u/s 68 - increase in proprietor's Capital - inadvertent mistake on the part of the employee - HELD THAT:- We find that the assessee not only before the AO but also before the CIT(A) duly explained that the increase in proprietor's Capital was reported due to inadvertent mistake on the part of the employee as he inadvertently consolidated the assets and liabilities of the personal file of the assessee with the assets and liabilities of the proprietorship concern, ‘M/s Selfcare - The Natural Way’. The audited accounts of the assessee were duly verified by the AO during the assessment proceedings. So far as the objection of the Assessing Officer that the assessee repeated his mistake in the return for assessment year 2017-18 is concerned, the assessee duly replied that by the time, the aforesaid mistake came to the notice of the assessee, the return for assessment year 2017- 18 was already filed. It was also explained that the assessee has filed the correct Income Tax Return for assessment year 2018-19, wherein, the assets/liabilities of the personal file of the assessee were not consolidated with the assets/liabilities of her proprietorship firm and true picture of the account has been presented and the mistake has been rectified. CIT(A) considering the accounts of the assessee as well as the circumstances leading to the aforesaid mistake has deleted the addition observing that it was not a case of unexplained credits u/s 68 - Decided against revenue.
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