Revisional Jurisdiction can’t invoke merely  based on a Clerical Mistake: ITAT [Read Order]

The Kolkata bench of the Income Tax Appellate Tribunal (ITAT) the revisional jurisdiction under section 263 of the Income Tax Act,1961 can’t invoke merely based on a clerical mistake.

Smt. Shila Dutta, the assessee is engaged in the proprietorship business of a liquor shop under the name of M/s. Kajora C.S. Shop. The assessee filed her return of income for the A.Y. 2015-16 on 29.09.2015 declaring a total income of Rs. 20,87,070/-. The return was processed u/s 143(1) on 26.04.2016 and income was assessed at Rs.22,97,320/-.

The Assessment U/S 143(3) of the Act was completed by ACIT, Circle – 1, Durgapur (Ld. AO) vide order dated 14.12.2017 at a total income of Rs. 23,07,270/-. Subsequently, the PCIT invoked the provisions of section 263 of the Act observing that the AO has accepted the claim without verification and proper examination.

The assessee explained that the total purchase of liquor was Rs.2.21 crores made from KDL and the TCS was duly reflected in Form 26AS. Further, against the total purchases of Rs.2.21 crores, the total payment made by the assessee to the KDL was at Rs.1.97 crores and a fund of Rs.22 lakhs was adjusted on account of the return of empty bottles. The copy of the ledger account of KDL was also produced before the Assessing Officer. The assessee submitted that the entire details of the sale and purchase were duly reconciled.

It was submitted that in respect of the invoice dated 17.11.2014, inadvertently, the registration number of the truck could not be mentioned which was a clerical mistake in three invoices, there is no material on the file to doubt the purchases or the transportation done by the assessee.

A Coram comprising of Shri Sanjay Garg, Judicial Member and Shri Girish Agrawal, Accountant Member observed that the PCIT wrongly proceeded to set aside the assessment order due to a mismatch of truck number in two invoices, which was visibly a clerical mistake. 

While allowing the appeal of the assessee, the assessment order passed by the PCIT was quashed and set aside. Shri Sunil Surana, CA, appeared on behalf of the appellant and Shri Tushar Dhawal Singh appeared on behalf of the Respondent.

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