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TMI Blog2022 (9) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... ns 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. - ITA No.557/Bang/2022 - - - Dated:- 30-8-2022 - Shri George George K, JM And Ms.Padmavathy S, AM For the Appellant : Sri.Madhusudhan, Advocate For the Respondent : Smt.Priyadarshini Baseganni, Addl.CIT-DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax (Appeals) erred in holding that the grounds no. 3, 5, and 6 raised before Commissioner of Income Tax (Appeals) are general or arguments in support of ground no.4 and ought to have adjudicated the same on the facts and circumstances of the case. 9. The Appellant submits that the calculation of interest by the Assessing Officer under Section 2346 of the Act is incorrect, inter alia, on the Quantum, Period, Rate and method on which it has been calculated. 10. The Appellant denies himself liable to be charged interest under Section 234B of the Act on the facts and circumstances of the case. 11. The appellant craves for leave of this Hon'ble Tribunal, to add, alter, delete, amend or substitute any or all of the above grounds of appeal as may be necessary at the time of hearing. 12. For these and other grounds that may be urged at the time of hearing of appeal, the appellant prays that the appeal may be allowed for the advancement of substantial cause of justice and equity. 3. The brief facts of the case are as follows: The assessee is a company engaged in the business of trading in gold diamond jewellery, bullion and silver articles. For the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records reveals following details: The appellant had shown having taken a loan of Rs3,88,00,000/- from M/s Motcab Finance Pvt Ltd during the year under consideration (Audit report dt. 14.1 0.2016). The cash balance as on 31.03.2016 was shown at Rs 3,48,71,938/-. Later on, the appellant filed a revised return of income by showing cash balance enhanced by Rs 30,00,000/-. The argument of the appellant was that an amount of Rs.30,00,000/- was wrongly treated by it as having been deposited in the bank account although it was not so. The appellant has submitted that the amount of Rs 30,00,000/- deposited in the bank account was actually the loan taken by it from MIs Motcab Finance Pvt Ltd and not cash deposit. As regards the amount of Rs 3,88,00,000/- the AO treated the same as unexplained (see para 5.3 of the assessment order). As regards the enhanced cash of Rs 30,00,000/- in cash book the AO held that the argument of the appellant that it was a mere correction in books, was not acceptable (see para 5.3 of the assessment order). Since in the order the AO had made addition of Rs.3,88,00,000/- only and the addition relating to unexplained cash o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 93. Later, revised return was filed on 03.11.2017 without any change in income / loss declared earlier. However, there was change in cash balance due to rectification entry passed in the books of account. Also in the original return and revised return, loans and advances also showed an increase of Rs.30 lakh. The A.O. during the course of assessment proceedings, required the assessee to provide the details and substantiate the following transactions:- (i) Entry passed by the assessee in its books of account to rectify an amount of Rs.30,00,000 [which according to the assessee was erroneously shown as cash deposited in to its bank account whereas it was actually a part of the loan received from a Non-Banking Financial Company (`NBFC ), Motcab Finance Pvt. Ltd. (`Motcab )]. (ii) Details of loan of Rs.3,88,00,000 (which according to the assessee included the above amount of Rs.30,00,000) borrowed from Motcab Finance Pvt. Ltd. 8. The assessee vide submissions dated 14.12.2018, furnished requisite details and documents to the A.O., as under:- Explanation for filing revised return of income. Copy of cash book before passing the rectification entry. Copy of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see 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). 11. 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 (refer page 5 of the paper book) and the same was increased by Rs.30 lakh in the revised return to Rs.10,00,90,675 (refer page 36 of the paper book). Further, the cash in hand as per original return was at Rs.3,48,71,938 (refer page 7 of the paper book) and the same was increased by Rs.30 lakh to a sum of Rs.3,78,71,938 (refer page 38 of the paper book). The 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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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