TMI Blog2003 (4) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... DGMENT The judgment of the court was delivered by R. BALlA J.-Heard learned counsel for the parties. Having heard learned counsel for the parties, we are of the opinion that no substantial question of law for consideration arises in this appeal under section 260A of the Income-tax Act, 1961. The facts of the case are that in respect of the assessment year 1990-91, a return of income was furnished by the respondent-assessee on December 31, 1990, declaring loss of Rs. 49,65,836. This return was processed under section 143(1)(a) with certain adjustment in the loss returned and an intimation to that effect was issued and served upon the assessee. Thereafter, it has been noticed that deduction for Rs. 7,00,000 on account of deposit made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, the Assessing Officer was not justified in initiating the proceedings under section 154 of the Act. The Tribunal following its earlier decision in the case of the assessee held that disallowance of the aforesaid claim under section 43B is not sustainable by way of rectification of intimation under section 143(1)(a) of the Act and accordingly the order of rectification was set aside. Aggrieved by this order, the present appeal has been preferred wherein the Revenue has formulated the following questions stated to be substantial questions of law that arise for consideration in the appeal as under: "(i) Whether, on the facts and in the circumstances of the case, the hon'ble Income-tax Appellate Tribunal is justified in holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 143(1)(a), which in the absence of proceedings under section 143(2) read with section 143(3) would have taken the shape of regular assessment, but once proceedings commence under section 143(2) or section 143(3), the intimation under section 143(1)(a) remains an intimation only of self-assessment with prima facie adjustments made by the Assessing Officer and becomes adjustable as per regular assessment. All issues then become open to be gone into by the Assessing Officer and any proceedings thereafter cannot be taken which remain of provisional character only. All questions must be decided in regular proceedings which alone shall attain finality. That is the clear ratio emanating from the decision of the Supreme Court in CIT v. G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent on the face of the record. In the present case, the question about the claim to deduction is a debatable issue which is apparent. The Assessing Officer in assessment under section 143(3) has held the claim to be not allowable under section 43B of the Act of 1961. The Tribunal has held it to be a claim allowable. This court has held the question to be a substantial question of law required to be considered in appeals under section 260A against the appellate order of the Tribunal which arose from regular assessment under section 143(3). Obviously the said question of law will require consideration of rival contentions and final decision thereon will prevail. It will be too early to predict at this stage that the Assessing Officer committe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot available; a regular assessment proceeding having been commenced under section 143(2), there is no need for a summary proceedings under section 143(1)(a). The Calcutta High Court in Coventry Spring and Co. Ltd.'s case [2002] 257 ITR 632 has taken the view that rectification procedure under section 154 is not consistent with the issuance of a notice under section 143(2). Apparently initial intimation merges into regular assessment and once proceedings for regular assessment under section 143(3) are commenced, there cannot be any recourse to bring into existence any order under section 143(1)(a) of the Act whether originally or by rectification. The question before the Calcutta High Court arose in like circumstances, the rectification of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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