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Issues:
- Refusal of Departmental authorities to rectify an adjustment made under section 143(1)(a). - Dispute regarding the sequence of deductions under sections 53, 54, and 48(2). - Interpretation of the Explanation below section 53 inserted by the Finance Act, 1987. - Applicability of adjustments under section 143(1)(a) in the case of debatable issues. Analysis: 1. The appeal was against the Departmental authorities' refusal to rectify an adjustment made under section 143(1)(a) concerning the quantification of long-term capital gains. The Assessing Officer adjusted the figures related to deductions under sections 53, 54, and 48(2) in the computation of capital gains from the sale of a property. 2. The crux of the dispute revolved around the sequence of deductions to be allowed. The assessee argued that deduction under section 48(2) should be quantified and allowed first before deductions under sections 53 and 54. However, the Department contended that deductions under sections 53 and 54 should precede the deduction under section 48(2. The insertion of the Explanation below section 53 by the Finance Act, 1987 was crucial in determining the correct sequence of deductions. 3. The Explanation clarified that references to capital gains in sections 53, 54, and others should be construed as references to the amount of capital gains as computed under section 48(1)(a). This meant that deductions under sections 53 and 54 should be made from the figure of capital gains before the deduction specified in section 48(1)(b). The Assessing Officer's adjustment aligned with this interpretation, correcting the mistake in the initial computation. 4. The Assessing Officer's actions were deemed appropriate as they were in accordance with the specific provision of the law and the insertion of the Explanation below section 53. The adjustment made under section 143(1)(a) was not debatable as it rectified a mistake of law apparent on the face of the return. The Assessing Officer's duty was to bring the sequence of deductions in line with the statutory requirements, and no other figures were altered. 5. Ultimately, the Tribunal dismissed the assessee's appeal, upholding the Assessing Officer's adjustment under section 143(1)(a) as being in compliance with the correct interpretation of the law and the specific provisions regarding the sequence of deductions under sections 53, 54, and 48(2. The Tribunal emphasized the importance of adhering to statutory requirements in computing capital gains and deductions, as clarified by the Explanation below section 53.
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