2003 (5) TMI 22

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....tances of the case, the Income-tax Appellate Tribunal was justified in law in holding that there was no mistake within the meaning of section 154 of the Act in allowing deduction of Rs. 6,00,000 by way of a bank guarantee under section 43B of the Act?" However, after hearing both the parties and upon a perusal of the order passed in appeal, we are of the opinion that the question does not convey the real controversy raised in this appeal and it needs to be reframed for the purpose of deciding this appeal. The question, which arises for consideration, in our opinion is, whether, on the facts and in the circumstances of this case, an intimation making assessment under section 143(1)(a) could be rectified by resorting to section 154 afte....

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.... (ii) any loss carried forward, deduction, allowance or relief, which, on the basis of the information available in such return, accounts or documents, is prima facie admissible but which is not claimed in the return, shall be allowed; and (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. Even where no such tax is found due, if any adjustment is to be made under the proviso, the same was required to be sent to the assessee. This provision was without prejudice to proceedings that may be taken under sub-section (2) which may be taken by the Assessing Officer. In ....

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....sessing Officer opts to go for the same. In the present case, in respect of the claim regarding deductions referred to above, no adjustment was made while intimation was sent to the assessee under section 143(1)(a). Thereafter, a notice under section 143(2) was issued to initiate regular assessment proceedings. The intimation was made in the first instance on January 16, 1992. It appears that soon after the intimation under section 143(1)(a) was issued, a notice under section 143(2) was issued to the assessee for regular assessment for the assessment year 1991-92. Thereafter, a notice under section 154 was also issued for disallowing the deductions claimed by the assessee on account of deposits made for securing bank guarantee for pay....

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....tantial question of law requires consideration of rival arguments and examination of pros and cons of rival contentions. Therefore, the dispute does not fall within the purview of a mistake apparent on the face of the record which could be rectified under section 154 of the Act in view of the principle enunciated by the hon'ble Supreme Court in T.S. Balaram's case [1971] 82 ITR 50. In this view of the matter, we are of the opinion that the Tribunal was right in holding that the Assessing Officer could not have invoked the powers under section 154 of the Act. The aforesaid contention has already been answered in favour of the assessee by this court in Income-tax Appeal No. 10 of 2003, decided on April 25, 2003 (CIT v. Udaipur Distillery C....