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TMI Blog2009 (9) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... on 29-10-2003. This was processed as such on 22-1-2004. Subsequently, the Assessing Officer noticed that on perusal of the P&L a/c, it was found that assessee had debited Rs. 80,731 as loss on sale of assets. As no such deduction is allowable as per the provisions of the Act, a show-cause notice in this regard was issued to the assessee. The assessee did not file any reply. The Assessing Officer concluded that there is a mistake apparent on record and order under section 143(1), dated 22-1-2004 was accordingly rectified by adding the loss on sale of assets being not allowable deduction. 4. Upon assessee's appeal the CIT(A) observed that he agreed with the submission of the learned counsel of the assessee that the Assessing Officer has neve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permissible deduction. Allowance of the same in the intimation was the apparent mistake and the Assessing Officer has correctly assumed jurisdiction under section 154 and rectified the same. In this regard, the learned Departmental Representative placed reliance upon in the case of CIT v. Shree Manjunathesware Packing Products & Camphor Works [1998] 231 ITR 53 (SC). The learned counsel for the assessee on the other hand placed reliance upon the orders of the CIT(A). 8. We have carefully considered the submissions. 9. In this case, we find that Assessing Officer has found that claim of loss of sale of asset is a prima facie mistake which is not allowable. This conclusion the Assessing Officer has arrived at by reading the narration of ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny tax or interest is found due on the basis of such return, after adjustment of any TDS, any advance tax paid, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provision of this Act shall apply accordingly; and (ii)if any refund is due on the basis of such return, it shall be granted to the assessee and an intimation to this effect shall be sent to the assessee." 10.1 Reading of the above, makes it clear that under section 143(1), at that point of time there was no pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw support from Hon'ble Bombay High Court decision in the case of Khatau Junkar Ltd. v. K.S. Pathania, that remedy available under section 154 are not alternative remedies against any intimation under section 143(1)(a). In the same case the Hon'ble Court has held that "alternative remedy under section 154 is an adequate remedy if the Assessing Officer acts within his jurisdiction if he travels beyond it". Section 154 cannot be considered as an adequate remedy. Also in the same decision Board Circular No. 581, dated 28-9-1990 [(1990) 88 CTR (St) 5] has been referred. In this it was mentioned that the scope of powers to make prima facie adjustments under section 143(1)(a) is somewhat coterminous with the power to rectify a mistake apparent f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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