TMI Blog2006 (1) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 80HHC, since the question of relief under section 80HHC is a debatable issue which does not fall within the purview of prima facie adjustment under section 143(1)(a) and could be taken up in regular assessment under section 143(3), the action of the Revenue invoking section 154 of the Act to rectify the intimation under section 143(1)(a) of the Act was not valid. - - - - - Dated:- 24-1-2006 - Judge(s) : P. D. DINAKARAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J.- Heard. The above appeal is directed against the order of the Income-tax Appellate Tribunal, Madras Bench "D" dated March 29, 2005, in I.T.A. No. 1023/Mds/1998. The facts in brief are: The assessee is a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the dispute regarding quantification of benefit under section 80HHC, found that contentious issues relating to deduction under section 80HHC cannot be considered in section 154 and if the appellant is entitled to a deduction, the same should be allowed as per the claim filed. The Appellate Tribunal upheld the decision of the Commissioner of Income-tax (Appeals) and dismissed the appeal filed by the Revenue. Aggrieved by the said order of the Appellate Tribunal, the Revenue has filed the above appeal by raising the following substantial questions of law: "1. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that the assessee ought to be given an opportunity to create an increased invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to be so credited on the basis of the amount of deduction in respect of investment allowance claimed in the return made by the assessee under section 139, but a higher deduction in respect of the investment allowance is admissible on the basis of the total income as proposed to be computed by the Assessing Officer under section 143, the Assessing Officer shall, by notice in writing in this behalf, allow the assessee an opportunity to credit within the time specified in the notice or within such further time as the Assessing Officer may allow, a further amount to the Investment Allowance Reserve Account out of the profits and gains of the previous year in which such notice is served on the assessee or of the immediately preceding pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the claim of deduction under section 80HHC of the Act will be academic and, therefore, the issue with regard to the deduction under section 80HHC cannot be considered under section 154 of the Act, as the same is debatable. This court in the decision rendered in CIT v. Named Leathers and Uppers [2005] 273 ITR 350 held that even though losses should be deducted from the profit available for the purpose of computation of relief under section 80HHC of the Income-tax Act, 1961, since the question of relief under section 80HHC of the Act is a debatable issue which does not fall within the purview of prima facie adjustment under section 143(1)(a) of the Act and could be taken up in regular assessment under section 143(3) of the Act, the actio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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