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TMI Blog2001 (10) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and circumstances of the case, the Tribunal is right in law in holding that the adjustments made by the Assessing Officer are in respect of income not derived from the export of goods and merchandise and that the same comes within the ambit of clause (iii) of the first proviso to section 143(1)(a)?" The assessee filed a return of income for the assessment year 1989-90 declaring a total income of Rs.12,290. The return was processed by the Assessing Officer under section 143(1)(a) of the Income-tax Act, (hereinafter referred to as "the Act'), and he determined the total income at Rs.2,68,000. In processing the return, the Assessing Officer made a prima facie adjustment of Rs.2,55,705 in respect of the assessee's claim for deduction under section 80HHC of the Act. An intimation under section 143(1)(a) of the Act was issued to the assessee. The assessee, thereupon, filed a petition for rectification by invoking section 154 of the Act in regard to deduction disallowed under section 80HHC of the Act. The assessee contended that the addition made by the Assessing Officer was beyond the scope of processing the assessment under section 143(1)(a) of the Act. The Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erwise 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 and all the provisions of this Act shall apply accordingly; and (ii) if any refund is due on the basis of such return, it shall be granted to the assessee: Provided that in computing the tax or interest payable by, or refundable to, the assessee, the following adjustments 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; (iii) any loss carried forward, deduction, allowance or relief claimed in the return, which, on the basis of the information available in such return, accounts or documents, is prima facie inadmissible, shall be disallowed. Provided further that where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n assessment under section 143(1)(a) cannot be completed by the Assessing Officer without hearing the assessee, if the adjustment made in the income and the computation of tax are not within the norms prescribed under the said section. The Assessing Officer is vested with power under section 143(1)(a) to make adjustments permitted therein which may result in relief not claimed or to deny a claim as prima facie inadmissible. Sub-clause (ii) of section 143(1)(a) says that if any refund is due on the basis of the return filed by the assessee, it shall be granted to the assessee, and clause (ii) of the first proviso to section 143(1)(a) says that 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 by the Assessing Officer. Correspondingly, clause (iii) says that any loss carried forward, deduction, allowance or relief claimed in the return, which, on the basis of the information available in such return, accounts or documents, is prima facie inadmissible, shall be disallowed. Therefore, there is a power in; he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... milarly, as held by the High Court of Madras in B. Seshamma v. CIT [1970] 119 ITR 314, interest earned from any source is generally income from other sources. If the Assessing Officer prima facie took the view that these deductions of interest claimed under section 80HHC of the Act were not admissible, which is the settled position in law, and exercised his right under clause (iii) of the first proviso to section 143(1)(a) of the Act to disallow those claims for deduction, it cannot be said that he had acted in excess of his authority under section 143(1)(a) of the Act. Nor can it be said that his decision to disallow, is beyond his power under section 143(1)(a) of the Act. It is in this context and since the assessee invited a decision by the Tribunal on these matters, that the Tribunal embarked upon the consideration of the sustainability of the claims of the assessee. After having invited the Tribunal to look into those questions, it is not open to the assessee to raise the contention that the Tribunal was not justified in going into the merits of the claims of the assessee. We may notice here that the assessee sought a rectification of the assessment by invoking section 154 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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