Interest on capital -error

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Guest

Hi all,

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

Replies (2)

CA Suri Kota

Assistant Manager @ EY

955 Points Joined November 2007

One thing for sure , AO wont allow your claim for recalculation as once the assessment is in progress, they wont allow any alterations !!!

CA-AK

600 Points Joined December 2008

Is it the case of tax audit? If not you can keep your point in front of AO by making recalculation and convincing that there is no loss to revenue. And you calculated allowable interest correctly.

Regards,

Anamika