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TMI Blog2024 (5) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... nt may arise and survive and the consequence of its non-compliance noted u/s 143(1)(a) of the Act may also survive for consideration for the purpose of invocation of Section 143(1A), in a case where the intimation issued u/s 143(1)(a) may not have been set aside. Those would be cases where despite issuance of intimation u/s 143(1)(a) of the Act, notice may be issued to an assessee in terms of Section 143(2) of the Act. If assessment proceeding had thus arisen in linear progression of the assessment proceedings, different considerations would arise. However, in these facts, material difference had arisen. Here, intimation issued u/s 143(1)(a) itself was set aside by the C.I.T. (A). Once the intimation stood set aside, it could never be said with any conviction that any adjustment made under Clause a(1) of section 143 survived. Once the object i.e. the intimation stood removed, its shadow i.e. the consequence could not survive. In view of the surviving limitation to file a revised return, the assessee was within its rights to file the revised return on 06.09.1996. It would also have been another case, where that Assessing Officer may have chosen to still process the return. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e about the assessee's bonafide in filing the revised return (withdrawing its claim for deduction of interest payable to UPFC) and inter-alia on that basis in upholding the levy of 'Additional tax' under Section 143(1A)? 4. Submission of learned counsel for assessee is, the original intimation issued under Section 143(1)(a) dated 28.02.1996 stood washed out and no legal effect may have been caused occasioned by any declaration made by the assessee in his original return dated 30.11.1995, for reason of revised return dated 06.09.1996 filed by the assessee upon the proceeding being remitted to the Assessing Authority by the Commissioner of Income Tax (Appeals) vide his order dated 16.07.1996. 5. In any case, the revised return was taken up in scrutiny assessment proceeding under Section 143(3) of the Act and regular assessment order was passed on 06.03.1998. According to that order, the petitioner was assessed at loss Rs. 5,25,390/-. Once assessment proceeding had thus concluded, there neither survived the original intimation issued under Section 143(1)(a) of the Act dated 28.02.1996 nor there survived legal basis to invoke the provision of Section 143(1A) of the Act. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Thus, the assessee s return for AY 1995-96 disclosing loss Rs. 11,79,190/- was processed under Section 143(1)(a) of the Act. On 28.02.1996, the Assessing Officer disallowed interest payments claimed by the assessee in its return, to the tune of Rs. 6,69,792/-. 9. Again under the scheme of the Act, since that processing of the return gave rise to a notice of demand, that itself gave right of appeal to the assessee under Section 246(2) of the Act. That appeal was allowed by the C.I.T. (Appeals) on 16.07.1996. 10. Perusal of that order reveals that the C.I.T. (Appeals) was of the view that the assessee ought to have been granted opportunity of hearing, before his return was thus processed. Accordingly, the intimation dated 28.02.1996 was set aside and the matter remitted to the Assessing Authority to proceed afresh. The correctness of that order passed by the C.I.T. (Appeals) was never challenged by the revenue. Admittedly, it attained finality. 11. Consequently, by way of legal effect caused, the original return of the assessee became pending, at the stage of processing. One year time from the end of AY 1995-96 having survived, the assessee filed its revised return on 06.09.1996. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply 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 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. 16. Also the provisions of Section 143(1A)(a)(ii)(B) read as below :- (1A)(a) Where as a result of the adjustments made under the first proviso to clause (a) of sub-section (1), (i) - - - - - - - - - - - (ii) the loss declared by such person in the return is reduced or is converted into income, the Assessing Officer shall, - (A) - - - - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent proceedings, different considerations would arise. However, in these facts, material difference had arisen. Here, intimation issued under Section 143(1)(a) itself was set aside by the C.I.T. (Appeals) vide his order dated 16.07.1996. Once the intimation stood set aside, it could never be said with any conviction that any adjustment made under Clause a(1) of section 143 survived. Once the object i.e. the intimation stood removed, its shadow i.e. the consequence could not survive. 20. In view of the surviving limitation to file a revised return, the assessee was within its rights to file the revised return on 06.09.1996. It would also have been another case, where that Assessing Officer may have chosen to still process the return. However, the Assessing Officer chose to initiate scrutiny assessment proceeding under Section 143(3) of the Act. That course adopted by the Assessing Authority itself destroyed completely, the basis to invoke section 143(1A), in the present facts. 21. On general principle, it is fundamental to the scheme of the Act, that there may only arise one assessment order for one assessment year in the case of any assessee. Once that assessment order came to be p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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