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2016 (12) TMI 1845 - ITAT CHENNAIChanging of status of the assessee while processing return under Section 143(1) - As in the course of processing the returns, the Assessing Officer changed the status of the assessee as AOP and levied tax under Section 164(1) of the Act at maximum marginal rate - HELD THAT:- The assessee admittedly filed their returns of income electronically and the same were processed under Section 143(1) of the Act. Section 143(1) of the Act enables the Assessing Officer to make prima facie adjustment on the basis of the material available on record. Changing of status is something outside the purview of the prima facie adjustment under Section 143(1) of the Act. Therefore, this Tribunal is of the considered opinion that changing of status of the assessees cannot be made while processing return under Section 143(1) of the Act. Therefore, this Tribunal is unable to uphold the orders of the lower authorities. Accordingly, the same are set aside. However, it is made clear that it is open to the Assessing Officer to take up the matter for scrutiny as provided under the provisions of the Income-tax Act. Appeals of the assessees stand allowed.
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