2001 (4) TMI 18

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..... he order of the Commissioner of Income-tax (Appeals) and Income-tax Appellate Tribunal. The Income-tax Appellate Tribunal had come to the conclusion that addition of guest house expenses could not be sustained as the issue was a debatable one and the notice under section 143(1)(a) was issued after the issue of notice under section 143(2). This course was not permissible. Hence, on both the coun .....

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..... ceeding in the matter to scrutinise the return filed and to make an assessment under section 143(2), thereafter, he suddenly sends an intimation under section 143(1)(a)(i), it would mean that he has changed the course from usual course and taken the assessee by surprise which is not contemplated by the Legislature. Section 143(1)(a)(i) of the Act is almost like an ex parte assessment because on th .....

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..... tion 143(2). In fact, this expression has carved out an exception that the Assessing Officer can send intimation to the assessee if the Assessing Officer has not exercised his power under section 143(2) of the Act." That apart the disallowance invoking section 143(1)(a) was not justified as prima facie adjustment on the issue was clearly a debatable one. For the reason aforesaid, we do not fi .....

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