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2015 (12) TMI 774 - HC - Income TaxRectification of adjustment made in intimation under section 143(1)(a) of the Income-tax Act, 1961, with regard to claim for deduction under section 80HHC - whether the Assessing Officer was justified in passing the order under Section 143(1)(a) with regard to the deduction under Section 80HHC? - Held that:- It is to be noted that Section 143(1)(a) empowers the Assessing Officer to compute the total income or loss after making adjustments, namely, "any arithmetical error in the return" "or" "an incorrect claim, if such incorrect claim is apparent from any information in the return". It is nobody’s case that there was any arithmetical error in the return. Moreover, the claim, assuming to be incorrect was not apparent from the information in the return which could have been dealt by the Assessing Officer under Section 143(1)(a). Thus, the issue was a debatable one as correctly held by the Tribunal. If the Assessing Officer was of the view that there was reason to believe that the claim was inadmissible, he should have served notice on the assessee specifying the particulars of such claim or such loss or deduction or relief under Section 143(2) or if he had reason to believe that the income had escaped assessment should have served notice under section 148 of the Act. The Assessing Officer chose neither of the two avenues. Thus the judgment of the Supreme Court in IPCA Laboratory Ltd. (2004 (3) TMI 9 - SUPREME Court ), relied on by the appellant, wherein the question for consideration was whether the appellants were entitled to deduction under section 80HHC in respect of the sum of ₹ 3.78 crores by ignoring the loss of ₹ 6.86 crores is not applicable as it is not a case regarding the processing of a return under section 143. The judgment of the Bombay High Court in IPCA Laboratories Ltd. (2001 (7) TMI 100 - BOMBAY High Court ) does not support the case of the Appellant as therein notice was issued under Section 148 of the Act, unlike the case in hand, where no such notice was issued. Therefore, the submission on behalf of the appellant cannot be accepted. - Decided in favour of the assessee.
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