9911796707
TMI Blog2003 (5) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of the court was delivered by R. BALlA J.-Heard learned counsel for the parties. This appeal is directed against the order of the Income-tax Appellate Tribuned, Jodhpur Bench, Jodhpur, dated December 15, 2000. At the time of admission the following substantial question of law was framed which has arisen for consideration in this appeal: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that there was no mistake within the meaning of section 154 of the Act in allowing deduction of Rs. 6,00,000 by way of a bank guarantee under section 43B of the Act?" However, after hearing both the parties and upon a perusal of the order passed in appeal, we are of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice under sub-section (2). In making this intimation, the proviso to section 143(1)(a) enabled the Assessing Officer while computing the tax or interest payable or refundable to the assessee, the following adjustment shall be made in the income or loss declared in the return, namely,-- (i) any arithmetical errors in the return, accounts or documents accompanying it shall be rectified. (ii) any loss carried forward, deduction, allowance or relief, which, on the basis of the information available in such return, accounts or documents, is prima facie admissible but which is not claimed in the return, shall be allowed; and (iii) any loss carried forward, deduction, allowance or relief claimed in the return, which, on the basis of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, his jurisdiction remains to issue notice under section 143(2) to the assessee to call for any requisite information from the assessee for the assessment year in question and to make a regular assessment within the meaning of section 143(3) of the Act. Apparently, the status of intimation given under section 143(1)(a) was of provisional nature subject to regular assessment if the Assessing Officer opts to go for the same. In the present case, in respect of the claim regarding deductions referred to above, no adjustment was made while intimation was sent to the assessee under section 143(1)(a). Thereafter, a notice under section 143(2) was issued to initiate regular assessment proceedings. The intimation was made in the first instance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Apart from the fact, that the proceedings of the assessee's case itself shows that the issue about the allowability of deduction claimed by him has involved a seriously debatable question. The Tribunal has consistently taken the view that such deduction is allowable. This question has been found by this court to be a substantial question of law in appeal. The decision of substantial question of law requires consideration of rival arguments and examination of pros and cons of rival contentions. Therefore, the dispute does not fall within the purview of a mistake apparent on the face of the record which could be rectified under section 154 of the Act in view of the principle enunciated by the hon'ble Supreme Court in T.S. Balaram's case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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