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Issues involved: Impugning an order of intimation u/s 143(1)(a) of the Income-tax Act, 1961 regarding adjustment of interest on securities in the return.
Summary: The petitioner-bank challenged an intimation order u/s 143(1)(a) of the Income-tax Act, 1961, which adjusted interest on securities not included in the return for the assessment year 1989-90. The petitioner contended that this adjustment was outside the purview of the section. The Commissioner dismissed the appeal despite acknowledging the error in the adjustment. The court noted that u/s 143(1)(a), adjustments are permissible only under specific circumstances listed in the proviso. The adjustment made by the Assessing Officer was not covered under these provisions, rendering it without jurisdiction. Referring to a previous court decision, the court ruled the intimation as without jurisdiction and set it aside, along with the additional tax claimed. The respondents were directed to issue a fresh intimation in compliance with the law and refund any admissible amount to the petitioner. As the original intimation was deemed without jurisdiction, subsequent proceedings u/s 154 and appeals were considered inconsequential, and any findings made therein were not binding on either party. The petition was granted in favor of the petitioner, with no costs imposed.
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