ITAT Rules in Favor of Assessee Over Typing Error in Audit Report 3CD

The ITAT ruled in favor of the assessee, setting aside the addition of Rs. 64,52,847 resulting from a typing error in the Audit Report 3CD. The mistake was deemed inadvertent by the auditor, supported by clarifications and documents. The ITAT found the explanation credible, leading to the deletion of the addition and allowing the appeal.

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Issues:
Addition of Rs. 64,52,847 due to typing error in Audit Report 3CD.

Analysis:
The appeal arose from the confirmation of an addition of Rs. 64,52,847 by the ld. CIT(A) due to a typing error in the Audit Report 3CD. The net profit in the 3CD Audit Report was Rs. 1,77,94,019, while in the audited profit & loss account, it was Rs. 1,13,41,173. The assessee failed to explain the difference, leading to the addition by the Assessing Officer. The assessee contended that it was a typographical error, supported by submissions and explanations. The ld. CIT(A) upheld the addition, prompting the appeal before the ITAT.

The assessee argued before the ITAT that the discrepancy was due to an inadvertent mistake by the auditor, as evidenced by various documents submitted. The Chartered Accountant clarified that the correct figure in the 3CD Audit Report should be Rs. 1,13,41,173, not Rs. 1,77,94,019. The ITAT noted the explanations provided to the Assessing Officer and found the mistake to be inadvertent. Consequently, the addition was deemed impermissible, and it was directed to be deleted. The ITAT allowed the appeal, ruling in favor of the assessee.

In conclusion, the ITAT set aside the addition of Rs. 64,52,847 made due to a typing error in the Audit Report 3CD, deeming it an inadvertent mistake by the auditor. The ITAT's decision favored the assessee, directing the deletion of the addition and allowing the appeal.

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