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2013 (8) TMI 705 - HC - Income TaxPrima facie adjustments - Scope of section 143(1)(a) of the Act - Prima facie adjustment made by the AO in respect of various deductions/exemptions/claims made in the return in Income - Held that:- The scope of section 143(1)(a) of the Act is by now well settled. The assessing officer can make prima facie adjustments only in respect of issues which are not debatable and for which no further information required from the assessee other than that contained in the return of income and the accompanying documents. In other words where the claim admits of more than one interpretation or requires further facts and details, the same is outside the scope of the said section. Power of Commissioner (A) to call for additional evidence under section 143(1)(a) - Ld. CIT (A) call for additional details and also to set aside the claimed deduction to the AO for further verification in a case u/s 143 (I) (a) – Held that:- While adjudicating an appeal against intimation under sec.143(1)(a) of the Act the CIT(A) is not empowered to call for further details at the appellate stage. The CIT(A) is required to see whether on the basis of the return or, the accompanying documents as filed before the assessing officer, any prima facie adjustment could be made. It is further not open to the CIT(A) to remit set aside the matter to the file of the assessing officer. The CIT(A) may either delete or sustain the prima facie adjustment - Decided against the Revenue. Also, reliance is placed upon the case Khatau Junkar Ltd Vs. K.S. Pathania [1992 (2) TMI 67 - BOMBAY High Court ], wherein it was observed that in the absence of any specific provision in the Income Tax Act which disallows a deduction because a specific document specified in that section is not annexed to the return, the Income-tax Officer cannot, under clause (iii) of the proviso to section 143(1)(a), disallow a claim or a deduction because, in his view, adequate evidence in support of such a claim or deduction is not before him. He can disallow a claim for deduction only if he is satisfied, on the basis of the material which is before him, that the assessee is not entitled to such a deduction - Use of the phrases "prima facie admissible" in clause (ii) to the proviso and "prima facie inadmissible" in clause (iii) to the proviso 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). In 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.
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