TMI Blog2004 (8) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... said account depicts the accrual of income and therefore, differing with the contentions of the appellant, assessment was made u/s 143(1)(a) treating the same as an accrued income. - considering the scope of section 143(1)(a), we are of the opinion that when the Assessing Officer proposes to differ with the disclosure made in the return, an opportunity of hearing to the assessee is required and therefore, such matter can be gone into u/s 143(3) serving notice u/s 143(2) and not u/s 143(1)(a) – appeal against AO’s order is allowed - - - - - Dated:- 20-8-2004 - Judge(s): ALOKE CHAKRABARTI., S. K. GUPTA. JUDGMENT Aloke Chakrabarti J. -This is an appeal filed by the assessee under section 260A of the Income-tax Act, 1961, against the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 98, under section 143(1)(a) of the Act did not allow the assessee's claim for deduction of the said sum of Rs. 228.34 lakhs. The assessee preferred an appeal before the Commissioner of Income-tax (Appeals) which was ultimately dismissed. Challenging the said appellate order, the assessee preferred a further appeal before the Appellate Tribunal which was also dismissed. Hence, the present appeal was filed by the assessee. Heard Mr. J.P. Khaitan, learned counsel for the appellant-assessee. The first contention of the appellant is that the Assessing Officer could not refuse deduction in respect of the said sum of Rs. 228.34 lakhs towards notional income under section 143(1)(a) of the Act and in case he was not accepting the same, he was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed contending, inter alia, that the law having undergone a change an appeal having been provided against an intimation under section 143(1)(a) with effect from June 1, 1994, under section 246(1)(a), the contention of the appellant that an order under section 143(1)(a) is final and therefore, has to be construed strictly, does not stand any further. With regard to the contention of the appellant that the notional income was shown in a separate heading only to give a rosy picture, it has been stated that the materials available at the 'relevant point of time were that the profit had been accounted for in the books of account and credited in the profit and loss account on accrual basis and, therefore, the action of the authorities cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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