9911796707
TMI Blog1998 (10) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... figure of Rs. 1,52,99,221 and 30% thereof came to Rs. 45,89,766. It is a subject-matter of record that the figure of Rs. 1,52,99,221 included three items, namely, income-tax paid Rs. 16,15,000, amount carried to reserves Rs. 58,88,329 and dividend paid/proposed Rs. 16,50,218, the aggregate of the aforesaid figures coming to Rs. 91,88,547. It is also a matter of record that the net profit as per profit and loss account reflected a figure of Rs. 61,10,674. 3. By means of an intimation under section 143(1)(a), the Assessing Officer accepted the aforesaid figure of book profits under section 115J. The assessee on receipt of the intimation filed an application under section 154 contending that the three items in question had been inadvertently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The further submission of the ld. counsel was to the effect that whereas the assessee while filing the return had committed a mistake, it was the duty of the Assessing Officer to rectify the same and work out the correct figure of book profits and consequentially the correct income. Inviting our attention to proviso (ii) to section 143(1)(a), the ld. counsel urged that this itself took care of the situation which had arisen in the present case as it stipulated relief to be allowed to the assessee which was prima facie admissible but not claimed. The ld. counsel also referred to the written arguments filed before the CIT(A) contending that these had not been considered in the proper perspective. Even before us the ld. counsel referred to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had earlier been debited to the said profit and loss account. It is not the case of the department that the audited accounts were not filed alongwith the return of income and we cannot comprehend a situation where an intimation under section 143(1)(a) has been prepared and sent to the assessee in a mechanical and automatic manner without referring to the audited accounts. The profit and loss account appears at pages 28 and 29 of the audited accounts and the net profit shows a figure of Rs. 61.11 lacs. Below the said profit and loss account at page 29 are the appropriations which are reflected directly in the balance-sheet and these contain the provision for taxation, transfer to reserve and amount appropriated for purpose of paying divide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rried forward loss, deductions, allowance or relief and what the assessee is asking for in the present appeal does not come under any of the aforesaid categories. In our opinion, this would be taking a very strict and technical view of the matter when one has to consider the much larger intention of computing the correct taxable income of an assessee and also allowing to an assessee who is ignorant or does not understand or know the law those reliefs to which he is patently, apparently and prima facie entitled. Another aspect has to be kept in mind i.e. the completion of the assessment under section 143(1)(a) without calling an assessee and this by itself casts a greater responsibility on the Assessing Officer as he has to ensure that whate ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
