CONCORD FORTUNE MINERALS INDIA PVT. LTD.,KOLKATA vs. A.C.I.T., CIRCLE - 11(1),, KOLKATA

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ITA 1650/KOL/2025Status: DisposedITAT Kolkata14 January 2026AY 2017-2018Bench: SHRI RAJESH KUMAR (Accountant Member), SHRI PRADIP KUMAR CHOUBEY (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the assessee had wrongly reported ₹41,42,088/- in the original Tax Audit Report for club expenses, while the correct amount was ₹41,421/-. The Tribunal found that the CIT(A) failed to consider this factual mistake, despite the revised Tax Audit Report being uploaded.

What were the facts?

The assessee, engaged in mineral trading, filed its income return for AY 2017-18. The case was selected for scrutiny, and a notice u/s 143(2) and 142(1) were issued. The Assessing Officer (AO), CPC, made an addition of ₹40,95,670/- under section 143(1) of the Income-tax Act for inconsistency/disallowance. The CIT(A) confirmed this addition.

What were the issues?

Whether the addition of ₹40,95,670/- on account of a wrongly reported amount in the Tax Audit Report is sustainable when the correct amount was much lower and a revised report was filed.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 143(2),Section 142(1),Section 37

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

For Appellant: Shri Amit Agarwal, AR
For Respondent: Shri Manoj Kumar Pati, DR
Hearing: 12.01.2026Pronounced: 14.01.2026

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 27.05.2025 for the AY 2017-18.

2.

The only issue raised by the assessee in various grounds of appeal is against the order of ld. CIT (A) confirming the addition of ₹40,95,670/- as made by the ld. AO, CPC u/s 143(1) of the Income-tax Act, 1961 (the Act) dated, 06.03.2019.

4.

The ld. CIT (A) also confirmed the order of the ld. AO on the ground that the addition was rightly made by the ld. AO on the basis of audit report filed by the assessee.

5.

After hearing the rival contentions and perusing the materials available on record, we find that assessee has submitted before the ld. CIT (A) that assessee has wrongly reported in the Tax Audit Report ₹40,95,570/- at serial no.21a filed originally on 12.09.2017. For the ready reference excerpts of the original report as well as revised report are extracted below:-

B l a n k

5.1. We note that the assessee has wrongly reported ₹41,42,088/- in serial no.21(a), towards expenses incurred at club being entries fee and subscription. Whereas, the correct amount was Rs. ₹41,421/-. In our opinion, the ld. CIT (A) has failed to take the connivence of the factual mistake committed by the auditor of the assessee who later revised the tax audit report and uploaded the same by correcting the mistake. In our opinion, the order of ld. CIT (A) confirming this addition is unreasonable and cannot be sustained. Accordingly, we set aside the order of ld. CIT (A) and direct the ld. AO to delete the addition.

6.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 14.01.2026.

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