ITAT adjudicated a tax dispute regarding a revised tax audit ...

Taxpayer Wins Challenge Against Arbitrary Tax Audit Adjustment, Highlighting Natural Justice Principles in Section 143(1) Proceedings

May 9, 2025

Case Laws     Income Tax     AT

ITAT adjudicated a tax dispute regarding a revised tax audit report addressing a typographical error. The tribunal found that the CPC/AO violated principles of natural justice by not providing proper intimation to the assessee before making adjustments under Section 143(1). The tribunal recognized that inadvertent errors in tax audit reports can be rectified, emphasizing that technical mistakes should not cause undue hardship. Consequently, the tribunal upheld the CIT(A)'s order, directing the AO to delete the impugned adjustment after verifying the typographical error. The revenue's appeal was dismissed, affirming the assessee's right to correct genuine mistakes in tax documentation without malafide intent.

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