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2013 (7) TMI 653 - HC - Income TaxValidity of Notice u/s 143(1)(a) - Prima facie Adjustment – Held that:- if the Assessing Officer wanted to reject any expenditure for want of proof/evidence he should have issued notice and called for the said evidence for deciding the question - the AO could not have made the said addition for want of documents - clause (iii) of the proviso was sought to be applied by the ITO. The procedure was not followed and the adjustment were made without notice The examples contained in the circular clearly show that, for want of proof, no disallowance or adjustment can be made - the adjustment made are not covered by the scope of section 143(1)(a) and as per the law expounded in S. R. F. Charitable Trust v. Union of India (1991 (10) TMI 38 - DELHI High Court) -It is only when a disallowance is evident from the facts on record that in adjustment can be made - the payments were made by the assessee before the due date of filing of the return and these aspects have not been denied and referred to by the AO – appeal decided against revenue.
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