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TMI Blog1996 (7) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... mon judgment as the question raised is common. The brief facts of the case are : The petitioner-assessee in Special Civil Application No. 1047 of 1996 is a public limited company, and by filing this petition, has prayed for issue of a writ of certiorari or any other appropriate writ, order or direction quashing and setting aside the notice under section 154 of the Act at annexure "C" to the petition, being invalid in law. For the assessment year 1993-94, the petitioner-assessee filed a return of loss of Rs. 5,93,17,235, along with computation of total income, a copy of which is annexed to the petition at annexure "A". By order dated March 31, 1994, the Assessing Officer passed an order under section 143(1)(a) of the Act, accepting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... August 18, 1994, under section 143(1)(a), vide annexure "B" to the petition. Thereafter, on October 7, 1994, a notice was issued by the Assessing Officer under section 143(2) of the Act, vide annexure "C" to the petition. It appears that notice under section 142(1) also came to be issued on July 10, 1995, vide annexure "D". After the issuance of notice under section 143(2) of the Act, a notice under section 154 came to be issued on December 15, 1995, vide annexure "E". The petitioner, by letter dated December 20, 1995, at annexure "F" pointed out that he has rightly claimed the depreciation and there is no question of rectification. However, the Assessing Officer, on January 29, 1996, vide annexure "G" passed an order computing additional t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 143, and the Assessing Officer can enhance or reduce the amount of tax or refund granted by him under that section. Sub-clause (i) of section 143(1)(a) of the Act reads as under : " If any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid and any amount paid otherwise 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. " Reading this provision, it is clear that adjustment can be made without prejudice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn under section 143(3) of the Act. In the instant case, the order of assessment is passed by the Assessing Officer and thus he has completed the assessment after scrutinising the evidence with proper application of mind. Therefore, in a case like this, after issuance of notice under section 143(2) of the Act, there is no question of issuing notice under section 154(1)(b) of the Act but the assessment is to be made under section 143(3) of the Act. Therefore, the impugned notices deserve to be quashed and set aside. Mr. Shah, the learned advocate has raised the contention with regard to patently disallowable items under section 143(1)(a) of the Act. We do not enter into the discussion of allowability or disallowability which may be patent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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