TMI Blog2003 (4) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... ed not to be free from debate and argument it is bound to be regarded as a debatable issue. - - - - - Dated:- 28-4-2003 - Judge(s) : DIPAK MISRA., A. K. SHRIVASTAVA. JUDGMENT The judgment of the court was delivered by DIPAK MISRA J.-In this appeal preferred under section 260A of the Income-tax Act, 1961 (for brevity "the Act"), the Revenue has called in question the pregnability of the order dated January 5, 1999, passed by the Income-tax Appellate Tribunal Jabalpur Bench, Jabalpur (in short "the Tribunal"), I.T.A. No. 234/Jab of 1996. The facts which are essential to be adumbrated are that the assessee is a Development Officer in the Life Insurance Corporation of India. He received incentive bonus from his employer and on the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been taken by the High Court of Rajasthan in CIT v. Shiv Raj Bhatia [1997] 227 ITR 7, 24, holding that the incentive bonus is a part of salary and taxable. The jurisdictional High Court of Madhya Pradesh has also admitted a reference under section 256 in CIT v. G.S. Jhamad [1997] 227 ITR 219 and is pending?" Mr. Rohit Arya, learned counsel for the Revenue, in support of the appeal submitted that the grant of deduction on incentive bonus might have been accepted in the past and there may be divergent views expressed by the various High Courts but that does not make the issue debatable. Mr. Hemant S. Modh, learned counsel appearing for the respondent, on the contrary, submitted that the controversy has not been put to rest and indubit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee: Provided that in computing the tax or interest payable by, or refundable to, the assessee, the following adjustments shall be made in the income or loss declared in the return, namely:-- (i) any arithmetical errors in the return, accounts or documents accompanying it shall be rectified; (ii) any loss carried forward, deduction, allowance or relief, which, on the basis of the information available in such return, accounts or documents, is prima facie admissible but which is not claimed in the return, shall be allowed; (iii) any loss carried forward, deduction, allowance or relief claimed in the return, which, on the basis of the information available in such return, accounts or documents, is prima facie inadmissible, shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also lend support to this interpretation. In its literal sense, 'prima facie' means on the face of it. Hence, on the face of the return and the documents and accounts accompanying it, the deduction claimed must be inadmissible. Only then, can it be disallowed under the proviso to section 143(1)(a). If any further enquiry is necessary, or if the Income-tax Officer feels that further proof is required in connection with the claim for deduction, he will have to issue a notice under sub-section (2) of section 143." Thus, it is manifest that when a deduction is claimed and it is some what controversial it cannot be treated to be prima facie disallowable. If the claim is made by the assessee is treated not to be free from debate and argument i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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