TMI Blog2007 (9) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 143(1)(a) itself providing for taking note of the documents/statements, the statement accompanying the return thus disclosing the facts fully, the income shown could only relate to the one from the property taken on lease, the documents accompanying the return ought to have been adverted to by the Income Tax Officer before passing any order under Section 143(1)(a) to make prima facie adjustment. - 244 of 2004 - - - Dated:- 11-9-2007 - K. RAVIRAJA PANDIAN and MRS. CHITRA VENKATARAMAN JJ. Venkatanarayanan for the appellant. T. Ravikumar, for the respondent. JUDGMENT The judgment of the Court was delivered by CHITRA VENKATARAMAN, J. - The assessee has filed this appeal framing the following questions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eved by the said order, the assessee preferred appeal before the Commissioner of Income Tax (Appeals), who, by order dated 13.05.1999, held that since the assessee had returned the income as income from the house property, he could not claim deduction of Rs.1,08,000/- being the rent paid in respect of the said property. On the facts disclosed prima facie in the returns, the appellate authority confirmed the order of the Assessing Officer. 4. On further appeal by the assessee, the Tribunal rejected the same on the ground that the provisions of law being clear on the point of admissibility of deduction of rent received from the property specially in a case where the assessee himself had shown the income under the head "income from house p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that even though the scope of Section 143(1)(a) is limited, yet, on the strength of the circular explaining the provisions contained therein, the Income Tax Officer should have accepted the return without making any prima facie adjustment therein. 7. Learned standing counsel for the Revenue supported the orders of the authorities below that given the scope of Section 143(1)(a), the return had been considered on the basis of what had been disclosed therein. 8. We agree with the learned counsel for the assessee. 9. The relevant provisions of Section 143(1)(a), as it then stood prior to the substitution by the Finance Act, 1999 with effect from 1.6.1999, reads as follows: "143(1)(a). Where a return has been made under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return filed before making any adjustment in the liability. Hence, when the Income Tax Officer proceeded with the return, fairness requires that the Assessing authority should have considered the statement filed along with the return before proceeding further under Section 143 (1)(a). 11. In the background of the statement filed disclosing the facts as regards the leasing of the property, it goes without saying that the Assessing Authority should have considered the return along with the statement in proper perspective before proceeding with the prima facie adjustment in this case. A reading of the provisions under Section 143(1)(a) leaves no room for doubt that the return filed along with the documents or accounts merit consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nil income. If at all any income is received from the property, it is only from the one taken on lease at Mount Road. Hence, in the background of the circular of the Central Board of Direct Taxes and the provisions of Section 143(1)(a) itself providing for taking note of the documents/statements, the statement accompanying the return thus disclosing the facts fully, the income shown could only relate to the one from the property taken on lease, the documents accompanying the return ought to have been adverted to by the Income Tax Officer before passing any order under Section 143(1)(a) to make prima facie adjustment. 14. Going by the circular dated 24.8.1994 (see [1994] 209 ITR (Statute) 75) and Section 143(1)(a), we accept the stand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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