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- Appealability of an intimation under section 143(1)(a) of the Income-tax Act, 1961 - Interpretation of section 246(1)(a) of the Act regarding appealable orders Analysis: The judgment pertains to a case where the Tribunal referred a question to the High Court regarding the appealability of an intimation under section 143(1)(a) of the Income-tax Act, 1961. The assessee, a private limited company, had filed a return declaring "nil" income for the assessment year 1990-91. The Assessing Officer made adjustments to the return, leading to a demand being raised without prior notice or hearing. The Commissioner of Income-tax (Appeals) initially dismissed the appeal, deeming it non-appealable under section 246(1)(a) of the Act. However, the Tribunal later held that the order was appealable under the mentioned section as the adjustments were of debatable nature and had civil consequences. The Tribunal allowed the appeal for statistical purposes, prompting the Department to file an application under section 256(1) of the Act. The High Court analyzed section 246(1)(a) of the Act, which allows an assessee to appeal against certain orders of the Assessing Officer. The Court noted that the assessee objected to the adjustments made, which aligned with the provision's scope. The Court highlighted an amendment introduced by the Finance Act, 1994, clarifying that an intimation under section 143 is appealable under section 246. Despite the assessment year being 1990-91, the adjustments made without notice or hearing transformed the intimation into an appealable order under section 246. The Court emphasized that the legislative amendment aimed to remove any ambiguity regarding the appealability of such intimations. Conclusively, the High Court upheld the Tribunal's decision, affirming that the intimation in question was appealable within the ambit of section 246 of the Act. The Court ruled in favor of the assessee against the Department, disposing of the case without costs. The judgment underscores the significance of legislative amendments in clarifying the appealability of certain orders and intimations under the Income-tax Act, ensuring procedural fairness and legal clarity in tax matters.
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