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TMI Blog2018 (1) TMI 1672X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer on account of typing error in the Audit Report 3CD when compared with the audited profit & loss account. 3. The facts regarding this issue are that the net profit shown by the assessee as per 3CD Audit Report is Rs. 1,77,94,019/- while as per the audited profit & loss account, it is Rs. 1,13,41,173/-. The assessee filed its return of income declaring an income of Rs. 1,13,41,173/- on 31/11/2014 as per the net profit in the profit & loss account. The assessee has taken the turnover at all the places at Rs. 35,21,51,232/- and computed the net profit in 3CD Audit Report considering such turnover and net profit of Rs. 1,77,94,019/-. In view of these facts, the assessee vide letter dated 25/11/2016 was required to explain and show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount it is Rs. 1,13,41,173/-. The assessee had filed its return of income for Rs. 1,13,41,170/- on 31.11.2014 as per net profit in P & L account. It is noteworthy to mentioned here that the assessee has taken turnover at all the places of Rs. 35,21,51,232/- and computed net profit u/s 3CD report considering such turn over at all the places of Rs. 35,21,51,232/- and computed net profit u/s 3CD report considering such turn over and net profit of Rs. 1,77,94,019/-. In view of the above facts, he assessee vide its office letter dated-25.11.2016 was required to explain the same and to show cause as to why the deference amount of Rs. 64.52,847/- may not be added to its income by 03.12.2016. the assessee has not submitted anything in this regard t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o further reply could be submitted. On receipt of the assessment order, a clarification as sought for from the Auditors has been received and the Auditors vide their letter dated January 13,2017 have explained the discrepancy arisen in Form No. 3CD as under: It is submitted, that in compliance to the questionnaire issued by the Assessing Officer (the books of account were produced before the Assessing Officer) and replies were also furnished Para 2 of the assessment order is as under: "2. The assessee is a Limited Company engaged in the business of manufacturing of Safety Shoes. Safety Uppers and lasted upper from the finished leather. ShriRavi Shukla, Authorized Representative of the assessee attended form time to time , filed various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rew our attention to page 7 which is the reply filed by the assessee to the notice dated 25/11/2016 of the Assessing Officer. In that letter, assessee has categorically stated in respect of turnover and net profit as Rs. 35,21,51,232/- and Rs. 1,13,41,172/- respectively while as per para 40 of 3CA Report, these are Rs. 35,21,51,232/- and Rs. 1,77,94,019/-. The assessee has also stated that they filed ITR showing the income at Rs. 1,13,41,172/-. It was an inadvertent mistake occurred while filing 3CA Report and the value of net profit for assessment is Rs. 1,13,41,172/-. The ld. A.R. of the assessee also drew our attention to page No.36 of the paper book, which is the copy of Audited Annual Report for the assessment year 2014-15, wherein the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit & loss account, the profit before tax is Rs. 1,13,41,172.87 and correspondingly the clarification letter filed by the Chartered Accountant of the assessee clearly states that the figure mentioned in column 40(C) of 3CD Audit Report has to be read as Rs. 1,13,41,173/- instead of Rs. 1,77,94,019/-, which was inadvertently mentioned. We further observe that even before the Assessing Officer, the same was explained vide letter dated 13/1/2017 as is appearing at page 7 of the paper book filed before us in response to notice dated 25/11/2016. In this view of the matter, we are of the considered view that there was an inadvertent mistake committed by the Auditor of the assessee by wrongly mentioning the figure in column 40(C) of 3CD Audit Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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