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TMI Blog2014 (10) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... essee a notice requiring him, on a date to be specified therein, to attend his office or to produce or cause to be produced there, any evidence on which the assessee may rely in support of the return and after taking into account all relevant materials the Assessing Officer shall by an order in writing make an assessment - Thus the provision for assessment to be made for the purpose of issuance of an intimation u/s 143(1) of the Act reserving the authority of the AO to resort to the provisions under sub-section (2) thereof, cannot be said to be completion of assessment and, therefore, limit the time otherwise available to file revised return – relying upon Assistant Commissioner of Income-Tax Versus Rajesh Jhaveri Stock Brokers P. Limited [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the time provided under Section 139(5) of the said Act. He submitted intimation issued under Section 143(1) of the said Act cannot be said to be an assessment relying on the decision reported in the case of Assistant Commissioner of Income Tax versus Rajesh Jhaveri Stock Brokers (P) Ltd. 291 ITR 500(SC), in particular paragraph 13 thereof. He submitted by that judgement it had been held assessment could not be said to have been completed on the issuance of intimation under Section 143(1) of the said Act. He also drew our attention to the judgment in Tarsem Kumar versus Income Tax Officer Ors. : 256 CTR (P H 116) rendered following the aforesaid judgment of the Hon ble Supreme Court. Ms. Ghutghutia, learned Advocate appearing on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in not accepting the revised return, treated it as invalid by relying on the decision rendered in CIT versus Punjab National Bank : 249 ITR 763, to hold the remedy of the assessee was to have preferred an appeal from the intimation, if it was aggrieved thereby. The Tribunal held, The intimation along with the refund was a decision of acceptance of self assessment was to reinforce Assessee s assessment being final which were to be appealed against or rectified but not revised as per legal interpretation of the statute put forth by the Assessee for consideration of its revised return . The rectification which the Tribunal found was available to be made if felt necessary by the appellant, would be confined to rectification of mistake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted for assessment that two different concepts emerged. While making an assessment, the AO is free to make any addition after grant of opportunity to the assessee. By making adjustments under the first proviso to s.143(1)(a), no addition which is impermissible by the information given in the return could be made by the AO. The reason is that under s.143(1)(a) no opportunity is granted to the assessee and the AO proceeds on his opinion on the basis of the return filed by the assessee. The very fact that no opportunity of being heard is given under s.143(1)(a) indicates that the AO has to proceed accepting the return and making the permissible adjustments only. As a result of insertion of the Explanation to s.143 by the Finance (No.2) Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntal work to scrutinize each and every return and to concentrate on selective scrutiny of returns. These aspects were highlighted by one of us (D.K. Jain, J.) in Apogee International Ltd. vs. Union of India (1997) 137 CTR (Del) 93: (1996) 220 ITR 248 (Del). It may be noted above that under the first proviso to the newly substituted s.143(1), w.e.f. 1st June, 1999, except as provided in the provision itself, the acknowledgement of the return shall be deemed to be an intimation under s.143(1) where (a) either no sum is payable by the assessee, or (b) no refund is due to him. It is significant that the acknowledgement is not done by any AO, but mostly by ministerial staff. Can it be said that any assessment is done by them? The reply is an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the sum so payable, and such intimation shall be deemed to be a noticed of demand issued under section 156 and all the provisions of this Act shall apply accordingly; We notice the said provision contemplates an assessment without prejudice to the provisions of sub-section (2) of the said section whereunder the Assessing Officer shall, if he considers it necessary, serve on the assessee a notice requiring him, on a date to be specified therein, to attend his office or to produce or cause to be produced there, any evidence on which the assessee may rely in support of the return and after taking into account all relevant materials the Assessing Officer shall by an order in writing make an assessment. Thus we find, the provision for ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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