TMI Blog2004 (11) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 80HHC is a debatable issue, which does not fall within the purview of prima facie adjustment u/s 143(1)(a) and that could be taken up in regular assessment u/s 143(3) and action of the Revenue invoking section 154 to rectify the intimation under section 143(1)(a) is not valid - Whether Tribunal was right in holding that the loss sustained by the assessee from its export business should be igno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h reference to the assessment year 1993-94. The brief facts leading to the filing of this appeal are as follows: In the intimation under section 143(1) of the Income-tax Act, 1961 (for brevity "the Act"), the Assessing Officer accepted the assessee's calculation of relief under section 80HHC taking the adjusted business profits as "nil" by ignoring the loss. The Assessing Officer, by proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred a further appeal before the Tribunal. The Tribunal, by order dated May 26, 2004, finding that the point at issue, viz., the manner of computation of deduction under section 80HHC of the Act, is a debatable issue, held that the Assessing Officer should not have brought the same as a subject matter of rectification under section 154 of the Act. However, on the merits, the Tribunal held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that the loss sustained by the assessee from its export business should be ignored and he should get the benefit of section 80HHC of the Act even though there is no export profits?" It is a settled law that 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailable for the purpose of computation of relief under section 80HHC of the Act, 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 the same could be taken up in regular assessment under section 143(3) of the Act, the action of the Revenue invoking section 154 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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