TMI Blog2022 (3) TMI 1015X X X X Extracts X X X X X X X X Extracts X X X X ..... allowing the expenditure. In the First Appellate proceedings, the CIT(A) dismissed the appeal of assessee against the order passed u/s. 154 of the Act on the ground that the issue raised is debatable. If that be so, the CPC has erred in disallowing the assessee s claim of expenditure while processing the return of income u/s. 143(1) - Revenue cannot in unilateral proceedings disallow expenditure without affording an opportunity to the assessee. What cannot be done u/s. 154 on the ground of debatability ,cannot be done u/s. 143(1) of the Act to the assessee s claim on which two views are possible A debatable issue cannot be a subject matter of adjustment u/s. 143(1) of the Act. In the case of Bajaj Auto Finance Ltd. vs. CIT [ 2018 (2) TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act before the CPC on 24/09/2019. The CPC vide order dated 13/11/2019 rejected assessee s petition for rectification. Against the order passed by CPC u/s. 154 of the Act, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee holding that the disallowance sought to be rectified u/s. 154 of the Act is a debatable issue, hence, outside the purview of section 154 of the Act. Aggrieved by the aforesaid findings of the first appellate authority, the assessee is in appeal before the Tribunal. 3. Shri T. Shankar representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of assessee. 4. We have heard the submissions made by ld. Departmental Representati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(1) of the Act to the assessee s claim on which two views are possible A debatable issue cannot be a subject matter of adjustment u/s. 143(1) of the Act. 5. The Hon'ble Jurisdictional High Court in the case of Bajaj Auto Finance Ltd. vs. CIT reported as 404 ITR 564(Bom) has held that debatable claim cannot be disallowed by way of an intimation u/s.143(1) of the Act. The relevant extract of the observations made by Hon'ble High Court in this regard are reproduced herein under: 10. In the present facts, it is undisputed that the decision of Gujarat High Court was referred to in the computation of income. Thus, the Assessing Officer could not have disallowed the claim on a prima facie view that the same is inadmissible. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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