TMI Blog2014 (1) TMI 1406X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer cannot unilaterally disallow the claim made by the assessee unless and until he calls upon the assessee to prove the claim made by him. Only after giving such opportunity, from the material placed on record, the assessing officer can disallow the claim as required under Section 40A(3) read with Rule 6DD of the Act - Before arriving at a conclusion that 20% of 29 lakhs and odd has to be disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w and in fact in holding that the disallowance of Rs.5,86,437/- made by the Assessing Officer in determining the total income does not come under the purview of prima facie adjustment prescribed u/s.143(1) (a) of the I.T. Act ?" 2. This appeal is filed by revenue pertaining to the assessment year 1996-97. The assessment proceedings came to be completed under Section 143 (1)(a) of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Income Tax Act, clearly indicates that 20% of 29,32,184/- was disallowed under Section 40A(3) as per the audit report. Therefore, according to learned Standing Counsel, intimation under Section 143(1)(a) was given giving the details as indicated above. On perusal of Section 40A (3) read with Rule 6DD of the Income Tax Rules, it is clear that the assessing officer has to make such disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing officer which is mandatory as laid down in the two decisions relied upon by the respondent assessee, i.e., Parikh Engineering and Body Building Co. Ltd. and another v. Union of India and others [ITR 238 page 554] and S.R.F. Charitable Trust v. Union of India and others [ITR 193 page 94]. These two decisions make it clear that the assessing officer cannot unilaterally disallow the claim mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
