2016 (2) TMI 708

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....n ITA No.5370(Del) of 1987:- "Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in disallowing the adjustments of interest payable to IFCI and sales tax penalty made by the Assessing Officer under section 43B of the Income Tax Act, 1961 while processing the case under section 143(1)(a) as not being prima facie adjustments?" 2. A few facts relevant for the decision of the controversy involved as available on the record of the case may be noticed. The assessee company filed its return of income for the assessment year in question on 30.11.1995 declaring nil income. The total income of the assessee before setting off the unabsorbed depreciation was Rs. 1,16,48,477/-. The unabsorbed dep....

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.... order dated 19.3.1999. Subsequently, this court under section 256(2) of the Act had directed the Tribunal to refer the question of law to it for its opinion. Hence the instant reference at the instance of the revenue. 3. We have heard learned counsel for the parties. 4. It has been categorically recorded by the Tribunal that adjustments could be made only on the basis of the details available on record. For making such disallowances, it was open for the Assessing Officer to follow the procedure laid down in the Act by issuance of notice under Section 143(2) of the Act. There was nothing wrong in issuing the notice under section 143(2) of the Act and the intimation under section 143 (1)(a) of the Act on the same date. Thus, notice und....