9911796707
TMI Blog2006 (3) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal and the same does not require interference. Hence we answer the questions in favour of the assessee and against the Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ecords which required rectification. While arriving at the correct share of income, the Assessing Officer had excluded a sum of Rs. 2,13,972 being interest payable under sections 234A, 234B and 234C of the Act from the total tax payable by the firm for determining apportionable profit among the partners. Aggrieved by that order, the assessee filed an appeal to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) dismissed the appeal and confirmed the order of the Assessing Officer. Aggrieved by the same, the assessee filed an appeal before the Income-tax Appellate Tribunal. The Income-tax Appellate Tribunal allowed the appeal filed by the assessee and set aside the order of the Assessing Officer issued under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee to enable him to produce the evidence and support the return. In this case, the return of income was processed under section 143(1)(a) of the Act, and the same reads as follows: "143. Assessment.-(1)(a) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142,- (i) if any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction, allowance or any other reliefs claimed in the return which are prima facie inadmissible. No authority has been conferred on the Assessing Officer to make any adjustment by way of excluding a sum of Rs. 2,13,972 being interest payable under sections 234A, 234B and 234C of the Act, from the total tax payable by the firm for determining the apportionable profit among the partners. Hence, the Assessing Officer has clearly transgressed his authority under section 143(1) in excluding a sum being interest payable under sections 234A, 234B and 234C, from the total tax payable by the firm, without notice to the assessee and without taking recourse to the regular assessment proceedings. Excluding the interest by the Assessing Officer from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, we are of the considered view that this is not an issue to be taken up under section 143(1)(a). Such a view taken by the Assessing Officer under section 143(1)(a) proceeding is to be set aside. Similarly the order of the Commissioner (A) upholding such an order also requires to be set aside. Accordingly we hereby set aside the order of the Assessing Officer issued under section 143(1)(a) to the extent of not adding interest under sections 234A, 234B and 234C to the tax portion of the firm for determining apportionable profit among the partners." From the above reasoning of the Tribunal, it is clear that the Tribunal considered the scope of section 143(1)(a) and correctly came to the conclusion that the Assessing Officer is wro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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