9911796707
TMI Blog2006 (12) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... limited company. It is involved in design engineering. The company had filed its returns of income the assessment years 1996-97 and 1997-98 on November 29, 1996, and November 29, 1997, respectively. After receipt of such returns by the assessee, the assesssing authority for the aforesaid assessment years, had issued an intimation under section 143(1)(a) of the Income-tax Act, 1961 (' the Act" for short), and in that had disallowed the claim of the assessee under the provisions of section 80-O of the Act, being of the view, that the allowance can only be on the net income and not on the gross income. Aggrieved by the aforesaid order, the assessee had carried the matter unsuccessfully before the first appellate authority as well as before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nied itself liable to be charged to such tax. 5. Whether the Tribunal is correct in law in holding that the deduction under section 80-O of the Income-tax Act is on the net income and not on the gross receipts?" 5. Sri A. Shankar, learned counsel for the appellant would submit that while making prima facie adjustments under section 143(1)(a) of the Act, the assessing authority is disentitled from making prima facie adjustments, if the claim made is debatable. According to learned counsel, the claim made by the assessee for deduction under section 80-O of the Act is highly debatable and, therefore, the assessing authority was not justified in disallowing the claim of the assessee while issuing the intimation under section 143(1) (a) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nkar, learned counsel for the appellant, would submit that the Special Bench of the Tribunal while considering the aforesaid issue has come to the conclusion that the deduction under section 80-O of the Act can only be on the net income and not on the gross income. If the Special Bench of the Tribunal could think in that way, the assessing authority in its best wisdom has come to the conclusion that the deduction under section 80-O of the Act can only be on the net income and not on the gross income In our view, the assessing authority is justified in coming to the said conclusion, since the issue that was posed before it was not that debatable. In that view of the matter, in our opinion, we cannot accept the submissions made by Sri Shankar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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