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TMI Blog2004 (7) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 143(1)(a) or not. Thus, in the opinion of the court, the answer is required to be given in the negative, in favour of the assessee - - - - - Dated:- 6-7-2004 - Judge(s) : B. C. PATEL., BADAR DURREZ AHMED. JUDGMENT The judgment of the court was delivered by B.C. PATEL C. J. - The following question framed on September 10, 2003, is to be determined by this court: "Whether the Tribunal was correct in law in holding that litigation expenses amounting to Rs. 55,100 claimed by the assessee under section 57 of Income-tax Act could be disallowed by taking recourse to the provisions of section 143(1)(a) of Income-tax Act, 1961?" Reading the question, it is very clear that the issue is not that she could claim the deduction, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax Officer could have exercised the powers under section 143(1)(a) of the Act to disallow the amount under the pretext that it is a mere adjustment. Section 143(1)(a) as applicable at the relevant time is required to be reproduced here: "143. Assessment-(1) (a) Where a return has been made under section 139, the Assessing Officer may, without requiring the presence of the assessee or the production by him of any evidence in support of the return, make an assessment of the total income or loss of the assessee after making such adjustments to the income or loss declared in the return as are required to be made under clause (b), with reference to the b return and the accounts and documents, if any, accompanying it, and for the purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer is entitled to make the adjustments to the income or loss declared in the return. However, that adjustment is required to be made only for the items included in clause (b) of sub-section (1) of section 143 of the Act. He can rectify any arithmetical errors in the return, accounts and documents referred to in clause (a) or he can give due effect to certain items indicated in sub-clause (iv) of clause (b). Section 57 is not mentioned therein. If the Income-tax Officer was of the opinion that the assessee has claimed the amount to which she is not entitled, then it was for him to initiate appropriate proceedings and assess the assessee instead of making adjustments in the manner which he has done. The court is only required to answe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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