TaxTMI 
TaxTMI 
2010 (10) TMI 850
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....hus the net addition of Rs. 1.89 lac made as income from house property is not sustainable? (ii) Whether the learned Tribunal has in the facts and circumstances of the case erred in holding that claims relating to depreciation and maintenance charges were not specified in the notice since the disallowance of these claims was consequential to the finding that the exemption claimed by the assessee in view of s. 22 was not available to the assessee?" 2. This question arises in the following factual background. The respondent/assessee herein filed his return for the asst. yr. 2001-02 declaring loss of Rs. 39,278. This return of income was processed under s. 143(1) of the IT Act; thereafter on 28th Oct., 2002 the AO issue not....
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....s faithfully, (AO) S.K. Arora ITO, Ward 2 (3), New Delhi" 3. After eliciting information on the basis of said notice the AO completed assessment under s. 143(3) of the Act at Rs. 11,42,340; the assessee preferred appeal thereagainst challenging the validity of the notice issued under s. 143(2)(i) of the Act. This appeal, however, was dismissed by the CIT(A). In the further appeal of the Tribunal, the assessee has been successful in as much as said appeal is allowed by the Tribunal holding that assessment of jurisdiction under s. 143(2)(i) of the Act for the purposes stated in the notice was not proper and maintainable. The Tribunal accordingly set aside the notice as well as assessment made ....
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.... on a date to be specified therein, either to attend his office or to produce, or cause to be produced, any evidence on which the assessee may rely in support of the return." 5. Perusal of the aforesaid provisions shows that the AO has competently issued notice either under cl. (i) of sub-s. (2) of s. 143 or under cl. (ii) thereof. Insofar as cl. (i) is concerned, the AO gets jurisdiction to issue the notice on the fulfilment of the following conditions:- (i) The AO has 'reason to believe' that certain claims, specified therein, made by the assessee in the return are inadmissible. (ii) The claims made should be of the nature of the claims of loss, exemption, deduction, allowance or relief. 6. Thus, it....
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....by him under s. 143(2)(i) of the Act. Still further, after verifying the particulars furnished by the assessee and after hearing the assessee, the AO can reject or allow the claim, but such claim must have been specified in the notice. In other words, the alleged wrongful claim sought to be verified by the AO must be a claim which is specified in the notice and the claim to be specified in the notice must emanate from the return furnished by the assessee because it is the claim of the assessee which is sought to be verified. Any item of income, expenditure, allowance, deduction or relief in respect of which no claim is made by the assessee, the same cannot find place in the notice under s. 143(2)(i) of the Act and the same cannot ....
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....s submitted that it was but proper and necessary for the AO to call for the information regarding the use of the said property. 9. It is difficult to digest the aforesaid arguments of the learned counsel for the appellant. As mentioned above provisions of s. 143(2)(i) can be invoked only to the conditions stipulated therein and as emanated above are fulfilled. This would apply if there was a claim of 'income from house property' not only there was no such claim, even the notice itself accpets this fact as it states that the AO had reason to believe that 'income from house property not shown'. No doubt the assessee had claimed the depreciation in respect of the property belonging to the assessee on the premise that it was used for ....