TMI Blog1995 (11) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... fied in confirming the assessment order passed under s. 143(1)(a) of the Act, as his order is opposed to the facts of the case. The brief facts of the case are as under. 3. For the assessment year under consideration, the assessee filed return of income admitting a total income of Rs. 39,770. The assessment was completed under s. 143(1) of that Act. While processing the return of income, the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the AO, the assessee appealed before the Dy. CIT(A), before whom the learned counsel for the assessee contended that disallowing of interest does not come under prima facie adjustments to be made while processing the return under s. 143(1). He contended that the AO should have taken the case for scrutiny if he doubted the genuineness of the interest payment. He further contended that the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ular, the AO was not justified in disallowing the assessee's claim in an order passed under s. 143(1) of the Act. He relied upon the decision of the Bombay High Court in the case of Khatau Junkar Ltd. Anr. vs. CIT (1992) 102 CTR (Bom) 194 : (1992) 196 ITR 55 (Bom), wherein it was held by their Lordships that the ITO cannot make prima facie disallowance on a point which is debatable without givin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be allowed or not, is to be decided by the AO only by issue of a notice under s. 143(2) to the assessee and giving an opportunity to the assessee of being heard. Since the AO has disallowed the assessee's claim under s. 143(1)(a) of the Act in the present case, I am of the opinion that he is not justified in disallowing the claim of the assessee. 7. The appeal filed by the assessee is according ..... X X X X Extracts X X X X X X X X Extracts X X X X
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