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2010 (10) TMI 850 - HC - Income TaxScope of provisions of s. 143(2)(i) - net addition of Rs. 1.89 lac made as income from house property - Held that:- If an AO has reason to believe that an assessee has made a claim of any loss, exemption, deduction, allowance or relief which is inadmissible, he will issue a notice under the new cl. (i) of sub-s. (2) of s. 143. The notice should specify the claim and call upon the assessee to produce evidence and particulars in support thereof. After hearing such evidence and considering such particulars, he will make an assessment of total income or loss under the cl. (i) of sub-s. (3) of s. 143, limiting himself to the claims he had set out to verify. If he feels that the case requires further scrutiny on other issues, he will be free to issue a notice initiating comprehensive scrutiny of the return, as is being done presently. Based on the assessment made by the AO, the officer has also initiated penalty as bad in law. Since the addition made by the AO itself is deleted by the Tribunal reccordig a fact that there was no claim made by the assessee with regard to income from house property or the deduction related thereto. In the absence of any such claim, the Tribunal opined, there was no question of assuming the jurisdiction on the basis that such a claim was inadmissible. In favour of assessee.
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