TaxTMI 
TaxTMI 
1986 (5) TMI 78
X X X X Extracts X X X X
X X X X Extracts X X X X
....l representative submitted that an assessee is entitled to file an application in Form No. 6A under section 143(2)(a) within one month from the date on which he is served with an order under section 143(1). An assessment under section 143(1) of the Act is normally to be made as returned by the assessee excepting where certain claims of exemptions or deductions are not supported. This, however, does not mean that when the assessee has a share in any partnership firm the ITO cannot rectify that share as per the assessment order passed in the case of the firm. Referring to Form No. 6A filed, he submitted that the objection of the assessee is that the share income of the firm has been taken at a higher figure and that the tax liability is enlar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n existence, the question of carrying out rectification could not arise and, therefore, the AAC was right in annulling the assessment. 4. We have given our careful consideration to the arguments of both the parties. Section 143(1) and (2) is reproduced : "(1)(a) Where a return has been made under section 139, the Income-tax Officer may, without requiring the presence of the assessee or the production by him of any evidence in support of the return, make an assessment of the total income or loss of the assessee after making such adjustments to the income or loss declared in the return as are required to be made under clause (b), with reference to the return and the accounts and documents, if any, accompanying it, and for the purposes o....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., for the earlier assessment year or years. (2) Where a return has been made under section 139, and--- (a) an assessment having been made under sub-section (1), the assessee makes within one month from the date of service of the notice of demand issued in consequence of such assessment, an application to the Income-tax Officer objecting to the assessment, or (b) whether or not an assessment has been made under sub-section (1), the Income-tax Officer considers it necessary or expedient to verify the correctness and completeness of the return by requiring the presence of the assessee or the production of evidence in this behalf, the Income-tax Officer shall serve on the assessee a notice requiring him, on a date to be therein specifi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessable or the expiry of one year from the date of the filing of a return or a revised return, whichever is later. This provision has resulted in a practical difficulty in cases where an order of assessment is made by the Income-tax Officer under section 143(1) of the Act without requiring the presence of the assessee or the production by him of any evidence in support of the return filed by him. In such cases, the assessee is entitled under section 143(2)(a) of the Act to make an application within one month to the Income-tax Officer objecting to such assessment. On receipt of an application under this provision, the Income-tax Officer is required to make a fresh assessment after considering the objections raised by the assessee. 18.2....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... filed with the ITO the order passed by the ITO automatically stands cancelled. We are unable to accept this proposition as to our mind except in section 146 of the Act where it has been specifically provided that in cases of assessments made under section 144 of the Act the assessee having made an application stating therein the reasons for his inability to attend to the notices issued on him if found to be of valid reasons, in that event the ITO may cancel the order passed by him under section 144 and then proceed to make a fresh assessment. There is absolutely no such similar provision existing in respect of the objections so raised by the assessee. This gets further clarified by reading section 143(2), second proviso, which states clear....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e objection in Form No. 6A so that the assessees do not unnecessarily go into litigation on the ground that the correction of the assessed income should also be carried out within the time allowed for making of the assessment under section 153. In view of the above situation, to our mind, it would be totally wrong to say that Form No. 6A stands in the same footing as in the application requesting cancellation of an assessment made under section 144. As already observed above, when Form No. 6A is so filed, till it is disposed of the assessee shall not be deemed to be a defaulter in respect of the tax demanded on him and the same cannot be forcibly collected and that he would not be liable for any additional interest in respect of the tax ....