TMI Blog2005 (4) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... ate authority ? 2. The assessment year 1984-85 is involved in the present reference. The brief facts of the case are as follows :- The assessee-respondent had filed the income-tax returns and claimed the status as specified trust . The Income-tax Officer completed the assessment for all these years under section 143(1) of the Act. However, he while making the assessment under section 143(1) of the Act adopted the status as that of A.O.P. and charged tax at maximum marginal rate. The said assessment orders were challenged by way of filing appeals before the Deputy Commissioner of Income-tax (Appeals) and it was contended that the Income-tax Officer had erred in taking status of A.O.P. and charging maximum rate of tax. It was claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding sub-clause (a) of section 246(1) of the Act. In contra, the learned counsel for the assessee submitted that the order passed by the Income-tax Officer though in exercise of power under section 143(1) of the Act was, in fact, an order under section 143(3) of the Act and was, therefore, appealable under section 246(1)(a) of the Act. Elaborating the argument, he submitted that only certain specified adjustments could have been made by the Income-tax Officer while passing an order under section 143(1) of the Act. In a case where the Income-tax Officer exceeds its power and makes the adjustments not permissible under section 143(1), the assessment order shall be referable to section 143(3) of the Act. Mere mention of a wrong provision in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inquiry as he deems fit. 7. A bare perusal of section 143(1), as it stood at the relevant time, shows that the Income-tax Officer without calling upon the assessee for production by him of any evidence in support of the return, may make assessment of total income or loss of the assessee after making such adjustments to the income or loss declared in the return as was required to be made under clause (b). The said assessment to the income or loss declared in the return is to be made with reference to the return and accounts and documents, if any, accompanying to it and also with reference to the past record of the earlier assessment years and determine the sum payable by the assessee or refundable to him on the basis of such assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cept the status as disclosed in the return of income. The Income-tax Officer if not satisfied by the disclosed status of the assessee in the return, has been empowered to issue a notice under sub-section (2) of section 143 requiring the assessee to produce or caused to be produced any evidence on which the assessee may rely in support of the return. Thereafter the assessment shall be finalised under section 143(3) of the Act. The section as it stood at the relevant time, empowers the Income-tax Officer to make only certain specified adjustments to the income or losses declared in the return. At the same time certain safeguards were also provided to the assessee who feels aggrieved by the rectification of any arithmetical errors in the retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder was not appealable, at the relevant point of time. Such an order was not made appealable for the obvious reasons. The reason appears to be because of the limited nature of power to be exercised by the Income-tax Officer in such matters. Assessment orders passed under section 143(3) were appealable. The basic difference is that the proceedings under section 143(1) are summary in nature except making prima facie adjustments as provided therein, the disclosed income or loss is accepted as correct without calling upon the assessee while proceedings under section 143(3) are also assessment proceedings but they are not summary proceedings. The Assessing Officer is entitled to assess the income or loss of an assessee inclusive of determinatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 143(1). He proceeded on the assumption that the Explanation clarifies the words inaccurate, inadequate or incomplete in material respect with reference to sub-section (1) of section 143. The argument is misconceived. These expressions do not find place under section 143(1) but they could be find out under sub-section (2) of section 143. The scheme of section 143 confers power to pass a summary assessment order after rectifying the arithmetical mistake, allowances and deductions permissible under section 143(1) of the Act. The said assessment order can be reopened on the application of an assessee filed within the period of one month under sub-section 2(a) of section 143. However, power has also been conferred on the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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