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TMI Blog1992 (11) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the entire expenses claimed on bonus/commission in his order under section 143(1)(a) (an sections quoted in this order are of Income-tax Act, 1961). 3. A rectification petition under section 154 was filed by the assessee. This was rejected by the Assessing Officer. The appeal before the ld. DC(Appeals) also failed. Hence this appeal by the assessee. 4. The ld. counsel for the assessee argued that the claim of 50 per cent from the gross receipt of the bonus/commission as expenses was reasonable and in any case it was not within the jurisdiction of the Assessing Officer to deny the deduction claimed framing an order under section 143(1)(a). He argued that the bonus/commission is nothing, but incentive commission granted by the Life Ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plain reading of section 143(1)(a) it appears only prima facie disallowable items can be disallowed while issuing intimation under section 143(1)(a). Anything debatable is outside its purview. The judicial interpretation of 'prima facie' disallowabte items has been laid in the decision in [1992] 107 CTR (Raj.) 165 (sic), their Lordships of the Rajashtan High Court held as under: " The matter has also to be considered from another angle that the word 'prima facie' which has been used therein means on the face of and refers to the items on which there cannot be two opinions. If the matter is arguable one or debatable then same cannot be disallowable under the provisions referred to above. " Further it may be pointed out that the Central B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than eight assessment years set off against the current business income, if the information is available in the return or the accompanying documents. (ix) Deduction under section 80C in respect of provident fund contribution or life insurance premia or NSC VI or VII issue not claimed, though the information is available in the documents accompanying the return, or claimed at a figure which is less than or in excess of the permissible amount. (x) Deduction under section 80L not claimed at a figure which is less than or is in excess of the permissible amount. (xi) Deduction under section 80C not claimed, although allowable on the basis of the information available in the return or the accompanying documents or claimed at a figure which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oof, no disallowance or adjustment can be made. The only option open to the ITO, in such a case, is that he can require the assessee to furnish particulars in which case, he will have to issue a notice under section 143(2). We respectfully agree with this reasoning of the Delhi High Court. " [Emphasis supplied] Therefore, whether the assessee had incurred further expenditure to earn the bonus/commission apart from expenditure incurred to earn first year commission, is a matter of investigation, production of documents and evidences or I may say further explanation. The Assessing Officer cannot disallow the claim without issuing notice under section 143(2) calling for them. I, therefore, uphold the argument of the ld. counsel that the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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