9911796707
TMI Blog1987 (1) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance claimed by the assessee in respect of the intensive care unit was not allowable under the Act. Since this was a mistake apparent from the record, a show-cause notice under section 154 was issued to the assessee. There was no response from the assessee. The ITO, therefore, rectified the assessment under section 154 by disallowing the investment allowance of Rs. 11,759. 3. In the appeal before the Appellate Assistant Commissioner the assessee contended that the mistake sought to be rectified was due to a change of opinion and so the rectification was not justified. The AAC did not agree with the contention of the assessee and held that the ITO was well within his jurisdiction in rectifying the original assessment under section 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es even if no assessment under section 143(1) was made. Further, there is no bar for the ITO to take action under section 154 even though he could have taken action under section 143(2) (b). So, the impugned order is valid. 6. We have considered the rival submissions. Section 143(2)(b) comes into play only when the ITO considers it necessary or expedient to verify the correctness and completeness of the return, whether or not assessment has been made under section 143(1). If the ITO considers it necessary to verify the correctness and completeness of the return, he has to obtain the prior approval of the Inspecting Assistant Commissioner in cases where the assessment has already been made under section 143(1). Then, after the issue of not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nother angel also. The circumstances in which an order under section 154 or section 143(3), after complying with the procedure under section 143(2)(b), may overlap and are not mutually exclusive. If in a given case the requirements of both sections 154 and 143(3) read with section 143(2)(b) are satisfied, the application of neither can be ruled out. If the requirements of section 154 are satisfied the assessee cannot claim as of right that he should be dealt with only under section 143(3) read with section 143(2)(b). The Kerala High Court in the case of R. Madhavan Nair v. CIT [1976] 105 ITR 813 considered the powers of the ITO under section 155(5) and 147(b) and held that it was open to the ITO to resort to either of the two provisions acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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