TMI Blog2007 (6) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant. JUDGMENT The judgment of the court was delivered by P.D.DINAKARAN, J. - The above tax case appeals are directed against the common order of the Income-tax Appellate Tribunal dated 11.2.2005 made in ITA Nos.346 and 347/Mds/1999 for the assessment years 1995-96 and 1996-97 respectively. 2. The Revenue is the appellant. The relevant assessment years are 1995-96 and 1996-97. The assessee is an exporter of readymade garments. The assessee claimed deduction under Section 80HHC for both the assessment years1995-96 and 1996-97. The Assessing Officer while making the prima facie adjustment under Section 143(1)(a) of the Act, set off the business loss arrived under Section 80HHC(3) and accordingly by assessment orders dated 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stions of law: "1. Whether in the facts and circumstances of the case, the Tribunal was right in holding that calculation of deduction u/s 80HHC cannot be done by way of prima facie adjustment u/s 143(1)(a)? 2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the loss sustained by the assessee from its export business should be ignored and he should get the benefit of Section 80HHC? 4. In this connection, it is apt to refer Section 143(2)(i) and (ii) of the Act, which provides for notice on the assessee calling for his evidence or objections. Section 143(2): Where a return has been furnished under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 143(1)(a) and the same could be taken up only in regular assessment under Section 143(3) of the Act, the action of the Revenue invoking Section 154 of the Act to rectify the intimation under Section 143(1)(a) of the Act was not valid, vide Commissioner of Income-tax v. Nameel Leathers and Uppers (2005) 273 ITR 350. 6. In the instant case, the Assessing Officer while making prima facie adjustment as to the deduction under Section 80HHC for the above mentioned assessment years, had not even provided an opportunity to the assessee nor called on the assessee for his evidence or objections as contemplated under Section 143(2)(i) and (ii) of the Act, as referred to above, which is mandatory. The non compliance of such procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X
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