The assessee declared an income comprising of HP Income, Interest Income, and Dividend income under the respective heads of income as well as claimed the interest on PPF and REC tax free bonds as exempt income u/s. 10. The CPC processed the return u/s. 143(1) and based on the tax auditor’s report, wherein the auditor had reported the income under clause 16(d) of Form No. 3CD, made addition/adjustment under the head any other item or items of addition u/s.28 to 44DA. The CIT (A) upheld the adjustment. The Tribunal held that, since nature of income in question was non-business income of the appellant, a mere mistake on part of tax auditor in reporting income not forming part of business income in clause 16(d) of Form No. 3CD would not ipso-facto lead to addition or adjustment in business income. As the assessee had already declared said income in return of income under respective heads of income as well as claimed certain income as exempt income. Hence adjustment made by CPC deserved to be deleted. (AY. 2021-22)