9911796707
TMI Blog2003 (1) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... y this common judgment and order. The petitioner, in both the cases, who is the proprietor of Manipur Electricals, a small scale industrial unit, submitted returns under section 139 of the Income-tax Act, 1961, (hereinafter referred to as "the Act") for the assessment years 1991-92, 1992-93, 1993-94 and 1994-95. In each of the returns filed by the petitioner-assessee, deduction of different amounts was claimed on account of the said amounts being interest on the loan secured by the petitioner from the Manipur Industrial Development Corporation (MANIDCO) for setting up the industrial unit in question. In response to the said returns filed, the Assessing Officer sent intimations to the petitioner under section 143(1)(a) of the Act regarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed by the petitioner-assessee came to the finding that as the interest though payable has not been paid, the deductions claimed were not admissible under section 43B(d) of the Act. The correctness of the aforesaid view as reflected in the intimations sent to the assessee and in the explanatory adjustment sheets furnished along with the said intimations, is the subject matter of the challenge in the present proceeding. I have heard Mr. H.S. Paonam, learned counsel for the petitioner, and B.P. Sahu, learned counsel appearing for the Revenue. Mr. Paonam, learned counsel for the petitioner, in support of the challenge made in the present writ petition, has contended that the return filed by the petitioner-assessee for each of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld go to show that the assessee has shown the interest amounts in question as items of expenditure. It is on the aforesaid basis that learned counsel for the petitioner has questioned the correctness of the view taken by the learned Assessing Officer. No affidavit has been filed on behalf of the Revenue. Mr. Sahu, learned counsel appearing for the Revenue, has, however, contended that as the writ petitioner has an adequate alternative remedy either by way of a rectification application under section 154 of the Act or by means of an appeal, this court ought not to adjudicate the dispute on merits and instead, require the petitioner-assessee to approach the departmental forum. The submissions advanced by learned counsel for the parties ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the assessee of the tax payable, the Assessing Officer is empowered to correct any arithmetical error in the return filed and in the documents accompanying the return. Similarly, if a disallowance is prima facie admissible but has not been claimed or if such a disallowance though claimed is prima facie not admissible, the Assessing Officer is empowered to make necessary adjustments in the income or loss declared in the return filed. The second limb of section 143 is contained in sub-section (2) which empowers the Assessing Officer to serve on the assessee a notice requiring him to appear before the Assessing Officer and produce such evidence that the assessee relies upon in support of the return filed. In the instant case, the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee would not be entitled to the deduction claimed in view of the provisions of section 43B(d) of the Act. The moot question, therefore, is whether interest as payable had been paid by the assessee or not. According to the petitioner-assessee, there is nothing in the returns filed or the documents appended to the returns to show that the interest which was payable had not been paid. A perusal of the profit and loss account filed along with the return for each of the assessment years in question does not indicate that the interest in question has not been paid by the assessee. No material has been disclosed by the Assessing Officer before this court disputing the contention of the writ petitioner-assessee that there was no material ..... X X X X Extracts X X X X X X X X Extracts X X X X
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