9911796707
TMI Blog2001 (2) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... w proposed are as under: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in upholding the decision of the learned Commissioner of Income-tax (Appeals), directing the Assessing Officer to allow deduction under section 32AB? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally justified in holding that the issue of claim under section 32AB of the Act is debatable even though the provisions of sections 32A(8C) and 32AB(10) of the Act are very clear and these provisions have been further clarified by Circular No. 559, dated May 4, 1990 of the Central Board of Direct Taxes?" The Tribunal has refused the application u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is less. This claim made in the revised return under section 32AB was disallowed by the Assessing Officer under section 143(1B) without requiring the presence of the assessee before rejecting the claim. The assessee applied for rectification under section 154 pointing out that since the claim under section 32AB having been made on fulfilment of all the conditions, could not have been disallowed by invoking the provisions under section 143(1B) and without issuing a notice under section 143(2) and without resorting to regular assessment under section 143(3), the application under section 154 of the Act was rejected by the Assessing Officer by giving the reasons of disallowing the claim made by the assessee under section 32AB for the first tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing, the application for rectification was rejected. On appeal, the Commissioner of Income-tax (Appeals) held that all the grounds relied on by the Assessing Officer for justifying the refusal of the claim of deduction under section 143(1B) are themselves debatable issues which clearly make out the case that adjustment by disallowing the claim for deduction under section 32AB under the revised return could not have been apparently denied under section 143(1B). He also referred to the guidelines issued by the Central Board of Direct Taxes about the power of the Income-tax Officer to make adjustments under section 143(1)(a) or 143(1B) clarifying that on debatable issues no adjustment ought to be made, which have not been followed by the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to such revised return which has been furnished in sub-section (5) of section 139. The said provision also envisages the amendment in adjustment made under intimation which has already been sent by the Assessing Officer to the assessee in determining the amount of any additional tax or interest. Therefore, the first ground raised by the Assessing Officer to support the disallowance of deduction under section 32AB as claimed by the assessee in his revised return becomes apparently erroneous inasmuch as section 143(1B) clearly envisages submitting of revised return after intimation under section 143(1)(a) and amendment to be made in such intimation by amending the amount of tax payable under the return as the intimation already ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the provision of section 143(1B) the claim to deduction under section 32AB could not be disallowed on the sole ground of intimation of tax computation under section 143(1)(a) in respect of the original return having already been sent before filing of the revised return, particularly the grounds which weighed with the Assessing Officer in disallowing the claim were themselves highly debatable. This is apart from the fact that as a result of regular assessment which would necessarily follow on objection being raised to adjustments under section 143(1)(a) or 143(1B), the claim of the assessee under section 32AB has been accepted by the Commissioner of Income-tax (Appeals) in regular assessment proceedings, that only remain binding. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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