TMI Blog1992 (3) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... e said section. The submission of learned counsel for the Department is that the assessment has been made on the same figure as was declared by the petitioner and it was only on account of the maximum marginal rate of tax as against the normal rate shown by the assessee that this demand was created. It has further been submitted that, in accordance with the provisions of section 167B of the Act since the shares of the members in the assessee's case were unknown, the Income-tax Officer was justified in applying the maximum marginal rate. The said section was amended by the Direct Tax Laws (Amendment) Act, 1989, with effect from April 1, 1989, and the maximum marginal rate was applied for the years 1989-90 and 1990-91. Since no reasons were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation available in such return, accounts or documents, is prima facie admissible but which is not claimed in the return, shall be allowed ; (iii) any loss carried forward, deduction, allowance or relief claimed in the return which, on the basis of the information available in such return, accounts or documents, is prima facie inadmissible, shall be disallowed: Provided further that where adjustments are made under the first proviso, an intimation shall be sent to the assessee, notwithstanding that no tax or interest is found due from him after making the said adjustments; Provided also that an intimation for any tax or interest due under this clause shall not be sent after the expiry of two years from the end of the assessment year i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is another provision in clause (i) regarding arithmetical errors in the return. There may be a case where the rate of tax is not disputed but while calculating the tax there is an error which could be corrected under this clause, i.e., while calculating the tax on the normal rate or the maximum marginal rate there is a mistake which could be corrected and will fall in the category of arithmetical mistake, but whether the maximum marginal rate is to be applied or the normal rate is applicable is not covered by any of the two clauses of the proviso to section 143(1)(a) of the Act. The matter has also to be considered from another angle that the word " prima facie " which has been used therein means " on the face of it " and refers to the it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is intention to make a provisional assessment, nor to hear the assessee lie may, if he desires, call upon the assessee to elucidate the return or the entries posted in the accounts and documents, but he is not obliged to do so. Section 141 has been enacted with the object of expediting collection of tax on the basis of the return made by the assessee. " The object of summary assessment proceedings as contemplated under section 143(1)(a) is not only to reduce the work of the Department but is also to minimise litigation and create confidence in taxpayers for submitting true and correct returns. If it appears that the return submitted by the assessee cannot be accepted for the purpose of taking action under section 143(1)(a), then the power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to be taken on which there could be two views or the information in respect thereof is not available in the return, then no such disallowance can be made. The Income-tax Officer should have disallowed the claim if the fact of shares of the members in the assessee's case being indeterminate was evident from the return itself. In the reply submitted by the respondents it has been mentioned in paragraph 8 that the return of income filed by the assessee for the assessment year 1991-92 did not mention any reason for applying any rate other than those prescribed in section 167B of the Act and, therefore, the tax was charged as prescribed under section 167B. No doubt, the assessee has not mentioned the reasons as explained by the respondents, b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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