TMI Blog2007 (3) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... Brief facts of the case are that the appellant filed return of income within the time allowed under section 139(1) of the Act on30-11-1997at an income of Rs. 12,25,560. Intimation under section 143(1)(a) of the Act was issued on 16-3-1998 wherein the income was accepted at Rs. 12,25,560 but demand of Rs. 6,60,575 was created in absence of TDS certificates and challan for self-assessment tax. Subsequently, the case was selected for scrutiny and notice under section 143(2) of the Act was issued on24-11-1998. The appellant filed revised return under section 139(5) of the Act at an income of Rs. 17,290 on31-3-1999. Thereafter, the appellant claims to have filed an application under section 154 of the Act dated 10-4-1999 for rectifying the inti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim was made for the first time vide letter dated10-4-1999. Thus, request for rectification was made after notice under section 143(2) was issued. He opined that once a notice under section 143(2) of the Act was issued, it was not open to the Assessing Officer to make any order under section 154 of the Act for rectifying a mistake in the intimation under section 143(1)(a) of the Act. He opined that once a notice under section 143(2) of the Act was issued, it was not open to Assessing Officer to make any order under section 154 of the Act for rectifying a mistake in the intimation under section 143(1)(a) of the Act. Ld. CIT(A) relied upon the case of Lakhanpal National Ltd. v. Dy. CIT [1996] 222 ITR 151 (Guj.) and on the case of Bombay Snu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the relevant provisions of law. Brief facts of the case had already been narrated in this order. Original return was processed under section 143(1)(a) of the Income-tax Act on16-3-1998. The assessee had filed revised return on31-3-1999under section 139(5). The assessee as per section 143(1B) of the Income-tax Act and notice under section 143(2) was issued on24-11-1998. 10. The Assessing Officer opined that there was no mistake apparent from record. Therefore, application moved under section 154 of the Act was rejected by him. 11. Ld. AR had relied upon the case of Janatha Tile Works Ltd. The Hon'ble High Court held that additional income-tax under section 143(1A) could be levied in an order under section 154(1)(b) if the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable for the revenue, either suo moto or at the instance of the assessee to make a regular assessment under sub-section (2) of section 143. The converse is not available; a regular assessment proceeding having been commenced under section 143(2), there is no need for a summary proceedings under section 143(1)(a)." 16. In this connection, it is pertinent to reproduce the relevant portion of sub-section (1B) of section 143 as inserted by Finance Act with eff 1ct from 1-4-1989 which reads as under:- "143(1B). Where an assessee furnishes a revised return under subsection (5) of section 139 after the issue of an intimation, or the grant of refund, if any, under sub-section (1) of this section, the provisions of sub-sections (1) and (1A) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlier return, shall still be liable to pay additional income-tax in relation to the adjustments specified in the said intimation, irrespective of the fact that he has himself made the said adjustment while declaring his income or loss in the revised return. This amendment has been made to cover the situation where income declared in earlier return had been increased as a result of prima facie adjustments made under the first proviso to clause (a) of sub-section (1) and additional income-tax has been charged under sub-section (1A), but the assessee revises his return declaring therein the increased income (after making the adjustment already intimated to him on the basis of the earlier return) and claims that no additional income-tax is char ..... X X X X Extracts X X X X X X X X Extracts X X X X
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