Interchange of partner's interest on capital

This query is : Resolved

Guest

Guest (Querist)

23 September 2015 Dear Experts
Please help me with this . In Ay 2013-14 the interest on partner's capital was errousnously credited to more to one partner and less to other partner. The total interest on both parther's capital is 12%. In fact the figures were just interchanged.

There was no loss to revenue as one partner claimed less by 100000 and the other claimed more by 100000 (more than 12%). Now the AO wants to disallow the excess interest claimed. Are there any case laws where such unintentional mistake was condoned? or can we atleast recalculate remuneration?

Thanks

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

23 September 2015 The error is REVENUE neutral. And the same is APPARENT from the books as well as TAX audit report form 3 CD where the figures of remuneration, interest etc are reported.

Don't even use the word MISTAKE...
it is ERROR. It is also APPARENT from record. Give the submission to AO to that effect and ask him or her to put it on record.

Let him call it as MISTAKE, you NEVER call it so. You call it ERROR because it is error and not mistake.

Message likes : 1 times