9911796707
TMI Blog1996 (4) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... sment was made under section 143(1)(a) of Income-tax Act. While making prima facie adjustment the Assessing Officer did not allow deduction under section 80L. The assessees then moved applications under section 154 of Income-tax Act claiming deduction of interest under section 80L. It was claimed by the assessees that similar interest was allowed in the case of Shri Om Prakash S/o Kedar Nath by the learned CIT(A) vide his order dated 18-8-1993. 3. The Assessing Officer referred the matter to the Dy. Commissioner (D.C.) of Income-tax under section 144A and rejected the claim in the fight of direction issued by the D.C. It was held that section 80L was not applicable as interest was not allowed on any deposit envisaged under section 80L of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 993] 66 Taxman 426 (Bom.), as also on order of Income-Tax Officer dated 1-1-1992 in the case of Shri Qasim wherein similar deduction under section 80L was allowed by the ITO following directions of CIT(A) dated 20-4-1992 and 21-12-1992. Copies of orders of CIT(A) were placed before us. Shri Goel argued that when two reasonable views of the matter were possible, the ITO was not legally correct in disallowing deduction under section 80L in prima facie adjustments under section 143(1)(a) of the Income-tax Act. It was a controversial matter. His order was without jurisdiction and liable to be rectified. The learned D.R. opposed above submissions. 6. On careful consideration of rival submissions, we are inclined to agree with the view taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, of opinion that the assessee could not claim exemption under section 80L of interest allowed by Meerut Development Authority on delayed payment of compensation. Such deduction being inadmissible under the law could be added back under section 143(1)(a) as a prima facie adjustment. There was no mistake which could be rectified under section 154 of the Income-tax Act. 7. Reliance of assessee on Circular No. 204 dated24th July, 1976of Board and on certain decisions of CIT(A) is of no avail as in those decisions it was not held that interest on compensation is interest on deposit. Even Circular No. 204 clearly states that purpose of clause (viia) of section 80L is to provide an incentive to making a deposit with such State Housin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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