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TMI Blog2006 (12) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... MENT The judgment of the court was delivered by H. L. DATTU J.— The assessee's appeals before us, inter alia, questioning the findings and the conclusion reached by the Income-tax Appellate Tribunal in Appeal Nos. 163/Bang/1999 dated January 31, 2003 and 750/Bang/1997, dated December 5, 2002. 2. The facts in a nutshell are: 3. The assessee is a private limited company. It is involved in design engineering. The company had filed its returns of income the assessment years 1996-97 and 1997-98 on November 29, 1996, and November 29, 1997, respectively. After receipt of such returns by the assessee, the assesssing authority for the aforesaid assessment years, had issued an intimation under section 143(1)(a) of the Income-tax Act, 1961 (' the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed subsequently by the decisions of High Courts still the issue is not one of debatable and thus the Assessing Officer was entitled to make adjustments under section 143(1)(a) of the Income-tax Act ? 4. Whether the Tribunal was justified in law in holding that the additional tax levied is in accordance with the scheme of Act when the assessee had denied itself liable to be charged to such tax. 5. Whether the Tribunal is correct in law in holding that the deduction under section 80-O of the Income-tax Act is on the net income and not on the gross receipts?" 5. Sri A. Shankar, learned counsel for the appellant would submit that while making prima facie adjustments under section 143(1)(a) of the Act, the assessing authority is disentitled f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Department would indicate that if the claim made is highly debatable issue, in such cases the assessing authority is not authorized to make prima facie adjustments and then issue an intimation under section 143(1)(a) of the Act. The same is reiterated by this court in the case of God Granites v. Under Secretary, CBDT [1996] 218 ITR 298. Sri A. Shankar, learned counsel for the appellant, would submit that the Special Bench of the Tribunal while considering the aforesaid issue has come to the conclusion that the deduction under section 80-O of the Act can only be on the net income and not on the gross income. If the Special Bench of the Tribunal could think in that way, the assessing authority in its best wisdom has come to the conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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