Sir,
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Mr A has filed ITR 3 for the financial year 2020-21.
He reported his business income under the head "profit and gains from business and profession".
He also reported income under the head salary in Schedule S (Details of Income from salary) in his ITR. He has not included his salary income in his Trading Account in his ITR.
Mr is liable for tax audit under section 44AB. In his tax audit report FORM 3CB, Auditor has reported as following -- PART – B- clause 16 (Amounts not credited to the profit and loss account, being), (d). any other item of income; “Salary Income Rs 20,00,000
He has received demand notice under section 154 as follows –
There is inconsistency in IT return "Serial no 5(d) Part A OI - any other item of Income" and Audit report.
It has been found by the assessee that Salary Income has been considered twice in the order under section 154, one as per ITR and another as per tax audit report.
Query
1. Is the auditor required to report Salary Income in form 3CB filed under section 44AB as it has led to discrepancy between his ITR and audit report?
2. if the auditor is not required to report Salary Income in form 3CB filed under section 44AB, then can the tax audit report be revised as response to demand under section 154?
3. if the Tax audit report cannot be revised, then what is the option for the assessee as his salary income has been considered twice in his total income?
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