9911796707
TMI Blog2022 (1) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... rred to as "the Act") relevant to the Assessment Year 2017-18. 2. The only issue raised by the assessee is that the learned CIT (A) erred in confirming the disallowance made by the AO for Rs. 40,77,012/- on account of depreciation claimed by him. 3. Briefly stated facts are that the assessee in the present case is an individual and filed his return of income declaring an income of Rs. 39,34,910/- which was processed under section 143(1) of the Act vide dated 19th March 2019. In the Intimation generated under section 143(1) of the Act, the amount of depreciation for Rs. 40,77,012/- claimed by the assessee was disallowed and accordingly, a demand was raised for Rs. 16,13,560/-. 3.1 The assessee against the intimation preferred an appeal to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of the appellant, if the contention of the appellant is found to be true and as per scheme of the I. T. Act The ground of the appeal is allowed for the statistical purposes. 3.5 The AO in pursuance to the direction of the learned CIT (A) vide order dated 1st July 2019 observed that the learned CIT (A) had no power under the provisions of section 251 of the Act to set aside the issue to the file of the AO. Therefore, the AO did not consider the submission of the assessee and confirmed the demand raised in the intimation generated under section 143(1) of the Act dated 19th March 2019. 4. Aggrieved assessee preferred an appeal to the learned CIT (A) who dismissed the appeal of the assessee by observing as under: 7.4. Further, the AO& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents, what to talk of written submissions, the very claim made by the assessee in the Ground of appeal that disallowance of depreciation amounting to Rs. 40,77,012/- was made by CPC, is not possible to verify. 5. Being aggrieved by the order of the learned CIT (A) the assessee is in appeal before us. 6. The learned AR before us filed a paper book running from pages 1 to 88 and submitted that the adjustments/disallowance/additions can be made in the intimation under section 143(1) of the act which are representing the arithmetical errors. The error if any which is debatable in nature cannot be subject to adjustment under section 143(1) of the Act. The right course of action for the Revenue was to assess the income in the assessment u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntly supported the order of the authorities below. 8. We have heard the rival contentions of both the parties and perused the materials available on record. Before going into fact and circumstances of the case on hand, we deem necessary to discuss procedure of the assessment under section 143(1) of the Act. The Income Tax Act, 1961 as amended from time to time provides for summary procedure of processing the returns of income filed under various provisions of the Act i.e. under section 139 or 142(1) of the Act under the provisions of section 143(1) of the Act. Further, the provisions of section 143(1) of the Act also offer for making arithmetical/ non-arithmetical discrepancies in the income declared in the income tax return pertaining to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akes it clear that the Assessing Officer is authorized to make prima facie adjustments to the return of income which is without prejudice to the provisions of sub-section (2) of section 143. The role of the Assessing Officer to proceed under section 143(2) is preserved despite intimation to the assessee under section 143(1). The Assessing Officer is under no obligation to accept the return filed by the assessee in case of any doubt. The Assessing Officer has an option to call upon the assessee to produce materials and evidence in support of his return. Notice under section 143(2) is issued with a view to ensure that the assessee has not understated income or has not computed the excessive loss or has not paid any tax in any manner. Once not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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