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2012 (7) TMI 215 - AT - Income TaxRectification of order passed u/s 143(1)(a) - AO adjustments in regard to the particulars of capital expenditure written off (debited under operational expenses)on the basis of observations of the auditor in the tax audit report - CIT(A) deleted additions made by AO - Held that:- Considering the provisions of sec. 143(1)(a) that unless the return or the accompanying documents or accounts show that the deduction, allowance or relief claimed therein is prima facie inadmissible on the basis of information available in the said documents, such deduction or allowance claimed cannot be disallowed. Only those adjustments can be made under the said clause which on the basis of return and documents accompanying it are "prima facie" inadmissible - it is not open to the AO to make any adjustment in the returned income by disallowing any claim for deduction, allowance or relief, unless he is satisfied on the basis of information available in the return, documents, and the accounts accompanying it that such a claim is inadmissible on the face of it and there is no possibility of any debate thereon on such claim. As disallowance is made without giving an opportunity to the assessee to explain his view point in support of the deduction or allowance, and additional tax on the increased amount is charged from him arbitrarily neither proof in support of a claim can be requisitioned nor nature of expenditure can be judged in proceedings u/s 143(1)(a) no basis to interfere with the findings of the CIT(A) - in favour of assessee.
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